1347 Property (PIH) Updates on Expected Costs Associated with Recent Louisiana Storm Activity
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1347 Property Insurance Holdings, Inc. (Nasdaq: PIH) is providing an update regarding the storm activity that has been widely-reported in the state of Louisiana from August 11, 2016 to August 15, 2016. Maison has many policyholders who have been impacted by this event.
While the ultimate cost and impact on the Company’s financial results cannot be determined with certainty at this time, the Company expects to incur losses with respect to insurance claims related to damage resulting from these storms. This event primarily impacted the Company's manufactured/mobile home policies which can be endorsed to cover the peril of flood. As a reminder, our Homeowner’s multi-peril product does not cover the peril of flood; however, we have experienced some homeowner policy claims related to wind damage.
The Company’s catastrophe reinsurance program is structured so that its retention is set at $5,000,000 for a single event, thus, based on our early analysis, the pre-tax losses incurred by the Company, net of reinsurance, are not expected to exceed $5,000,000. The Company has estimated this initial potential loss based on current predictive models and claims experience. The Company also believes that it may have recoveries available to it under its per-risk reinsurance program.
Doug Raucy, Chief Executive Officer, stated, “We are actively fielding and evaluating claims while working with our agents and reinsurance partners to quickly aid our policyholders following this period of storm activity. Our priority, as always in challenging situations like this, is to deliver the high level of customer service that our clients expect. We continue to maintain a strong capital position and intend to provide regular updates to our investors throughout the process.”
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