Hurricane Milton, which made landfall in Florida as a Category 3 storm, could lead to increases in property catastrophe reinsurance prices during the January 1 renewals. According to analysts at Keefe, Bruyette & Woods (KBW), the anticipated insured losses are expected to range from $20 billion to $40 billion, potentially reflecting a lower-than-expected impact on pricing stability. As a result, KBW predicts only low- to mid-single-digit increases in reinsurance rates, contrary to earlier expectations of mid-single-digit decreases. The chief companies exposed to the hurricane in Florida include Berkshire Hathaway, Progressive Corporation, and Allstate Corporation, with each having substantial amounts of direct written premiums in the market.
