Tewksbury’s AM Best says Texas storm may cost insurers record first-quarter losses

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Tewksbury’s AM Best says Texas storm may cost insurers record first-quarter losses

AM Best, the Tewksbury, New Jersey-based insurer credit rating agency had issued a statement late on Friday saying that the historic Texas winter storm, which had blighted the US State’s electrical grids and wreaked havocs on a waft of properties involving shattered pipelines alongside collapsed roofs, could add to a deluge of detrimental effects on a swathe of US insurers which are already grappling with a tremendous scale of fiscal pressure associated to pandemic-inflicted damages.

On top of that, the New Jersey-headquartered American insurer credit rating agency had also said that a historic winter storm in Texas this week, the largest on-shore oil producing state in the United States, leading to a power failure which lasted more than 72 hours apart from severe property damages, could push the US insurers on the cusp of a record first-quarter losses.

Texas storm could cause the costliest winter weather even in Texas history- AM Best

Adding further strains on a beleaguered US insurer industry, AM Best had also added in the report that the severity of the Texas storm in the quarter, which usually is less known for weather-related catastrophic losses, could even turn out to be the most expensive winter weather incident even in the history of Texas for the insurers as the Texas Department of Insurance has been preparing to assess the extent of damages alongside associated insurance expenses, a spokesman for the Department said late in the day.

Meanwhile, as a Boston-based insurance software firm Karen Clark & Co. had estimated an approximated $18 billion in insurances for property damages in the US state of Texas alongside other Southwestern parts of the country, a spokesman for Texas Dept.

of Insurance, Ben Gonzalez said, “We expect this to be a large event, but we just don’t know how large it will be”.