Insurance
Home›Insurance›Reinsurance›Fitch says Hurricane Isaias losses likely won’t hit in…
Fitch says Hurricane Isaias losses likely won’t hit insurers’ credit
Fitch estimates industry losses could reach the mid-single-digit billions, and frames the event as a fourth-quarter and 2026 earnings issue for Gulf-exposed reinsurers.
Fitch expects Hurricane Isaias to drive moderate economic and insured losses, estimating that industry losses could reach the mid-single-digit billions of dollars despite the storm being downgraded to a tropical storm after landfall.
The rating agency said Isaias peaked as a Category 3 hurricane in the Gulf before weakening from increased wind shear and then making landfall on October 9 as a Category 2 storm with maximum sustained winds of 105 mph, affecting Florida, Alabama, Georgia, and the Carolinas.
Fitch characterized the storm as a fourth-quarter and 2026 earnings event for large, rated re/insurers with Gulf exposure, but said it is not likely to affect the credit profiles of rated property and casualty insurers and reinsurers.
Fitch attributed its view to Isaias’ reduced intensity at landfall, which it expects to translate into more manageable insured losses, and the story also notes an earlier Cotality estimate of $2 billion to $3 billion for insured losses from wind and storm surge.