S&P Global Ratings has warned that Hurricane Milton may completely deplete the 2024 catastrophe budgets for rated U.S. property/casualty insurers, as potential losses from the storm could push the combined losses for the year to over the $40 billion budgeted for natural disasters. With year-to-date catastrophe losses already reaching $26 billion, many insurers are nearing their budget limits. While this situation could impact underwriting margins and earnings, S&P noted that the overall capitalization of the insurers remains stable. In contrast, the reinsurance sector seems well-equipped to absorb losses, with substantial catastrophe budgets and earnings buffers in place.
