A report from SNL Financial indicates that, based on recent catastrophes, reinsurers may be footing some of the bill left by Superstorm Sandy.

And one of these reinsurers is the Federal Emergency Management Agency (FEMA) since, as the administrator of the National Flood Insurance Program (NFIP), it basically reinsures business under the “Write Your Own” program that allows private insurance companies to write federal flood-insurance policies in their names.

According to SNL, Wright Insurance Group ceded the most business to the NFIP in 2011, followed by Allstate and The Hartford Financial Services Group. A homeowners' policy does not cover flood, including flood by storm, therefore “the NFIP will likely be substantially on the hook from Sandy,” reports SNL's Thomas Mason.

Recommended For You

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
NOT FOR REPRINT

© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.