Mediaboss Marketing

US primary insurer Progressive has reversed the previously announced reinsurance recoverable of $95 million under its per occurrence reinsurance contracts, as the firm remains close to reaching the annual retention thresholds under its 2024 catastrophe aggregate excess of loss contracts.

For May, Progressive reported net catastrophe losses of $722.1 million, leading the firm to record the above reinsurance recoverable of $95.1 million in its property segment.

As we covered back then, the net catastrophe losses for May translated to 12.3 loss ratio points, as losses and loss adjustment expenses for the month approached $4.8 billion.

Now though, it would appear Progressives ultimate net losses for May 2024 came in much lower than had been expected.

During June, we increased our Personal Lines loss estimates about $115 million, or 2.5 points for the month, and decreased our Property loss estimates a net $12 million, or about 4.7 points, relative to the May storms, Progressive said in its June results.

The firm continued, We also reversed the reinsurance recoverable of $95 million, which included losses and allocated loss adjustment expenses, under our per occurrence reinsurance contracts.

Since these storms occurred close to the end of the month, estimating the losses was challenging as virtually no claims had been reported at the time we estimated May results.

On a year-to-date basis as of June 30, 2024, we remain close to reaching the annual retention thresholds under our 2024 catastrophe aggregate excess of loss contracts.

Originally posted here:
Progressive reverses $95m May reinsurance recoverable - Reinsurance News