US primary insurer Progressive’s property business loss estimate reduced by $60.4 million in the month of July, reflecting further development on the May storms.
Back in June, property and auto-focused insurance group Progressive announced net catastrophe losses of $722.1 million for the month of May, which resulted in a reinsurance recoverable of $95.1 million in its property segment under its per occurrence reinsurance arrangements.
In July, the carrier reported on its June performance and loss experience, revealing a decreases in its property loss estimate of $12 million, or 4.7 points, relative to the May storms.
At the same time, Progressive announced that it had reversed the $95 million reinsurance recoverable, which included losses and allocated loss adjustment expenses, explaining that estimating losses from the May storms was a challenge as they occurred close to the end of the month, with virtually no claims reported when the estimate was made.
Today, in reporting its July results, Progressive has disclosed a further reduction in its loss estimates for the May storms.
“During July, our Property business loss estimates decreased $60.4 million, or 23.2 points, reflecting development on the May storms,” says the firm.
So, over June and July, Progressive decreased its May storm property business loss estimates by more than $72 million, and while it seems the firm is now not making a recoverable under its per occurrence agreements, this reduction probably also has a bearing on its aggregate coverage, as it may bring the total down and further from attaching.
