Nationwide: Hurricane Damages Will Cost $850M
NU Online News Service, Nov. 15, 3:34 p.m. EST?Nationwide said it expects losses and loss adjustment expenses from the four hurricanes that hit the Southeastern United States this hurricane season to cost the company $850 million pre-tax, or $550 million on a post-tax basis.[@@]
This estimate is net of reinsurance recoveries from the Florida Hurricane Catastrophe Fund and includes storm-related claims caused by Hurricanes Charley, Frances, Ivan and Jeanne, the Columbus, Ohio-based carrier said.
The company said Nationwide and its property and casualty affiliates have received more than 119,500 storm-related claims since the first of four major hurricanes struck the U.S. coastal area on Aug. 13, 2004. To date, Nationwide policyholders have reported 1,570 large loss homeowners claims?losses of $50,000 or more?and over 84,000 homeowners claims, the company disclosed.
The insurer continues to receive about 1,000 storm damage claim calls per week, according to Ken Enscoe, Nationwide's director of catastrophe claims operations.
"We've had our claims teams on the ground since Charley hit Florida in August, and our teams will stay until the job is finished," said Mr. Enscoe.
Mr. Enscoe also added that Nationwide's response to this year's hurricanes resulted in "the largest catastrophe team mobilization in company history," involving nearly 1,800 field associates. The vast majority of projected losses are coming from Florida, Mr. Enscoe said, where Nationwide has received more than 93,500 claims so far.
Nationwide is Florida's third-largest property insurer, according to the Florida Office of Insurance Regulation, and offers coverage to more than 300,000 homes and nearly 305,000 vehicles in the state. The company provides various insurance and financial services, including auto, homeowners, life, health, commercial insurance, administrative services, annuities, mutual funds, pensions and long-term savings plans.
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