An aerial view shows cars driving through flooded streets after Hurricane Milton's landfall, in Siesta Key, Florida, on Oct. 10.Marco Bello/Reuters
Hurricane Milton could cause up to US$50-billion in insured losses for Florida property owners, pushing insurers’ estimated losses in the state over US$100-billion in 2024 alone, Fitch Ratings said in a report published on Thursday.
On Thursday morning, the Category 3 storm cut a destructive path across the Sunshine State, killing at least 10 people and leaving millions without power.
But the state appears to have avoided the “worst-case scenario” outlined by analysts, which on Wednesday forecast as much as US$100-billion in insured losses from Milton alone.
Now Fitch analysts are estimating Milton will lead to between US$30-billion and US$50-billion in insured losses, according to their report published Thursday, which noted it would be the largest insured loss since Hurricane Ian in 2022.
Coming on the heels of Hurricane Helene two weeks prior, Milton would further push total insured losses for insurers in the state over US$100-billion for the fifth straight year, the Fitch analysts wrote.
Ultimate losses will depend in part on the level of demand for the supplies needed to repair and rebuild damaged properties after the storm, which historically can increase insured losses by 20 per cent or more, according to Fitch.
Milton is unlikely to affect the credit of well-capitalized large rated property and casualty insurers and global reinsurers, the report noted.
Domestic insurers are also likely to absorb the expected losses through their reinsurance programs, the Fitch analysts wrote. They warned, however, that these state specialists will be exposed should another storm hit the state this hurricane season.
“The Florida homeowners’ insurance market’s precarious position will weaken further with the destruction generated by Milton.”