Tuesday, November 6, 2012
Progressive Expects Most Hurricane Sandy Cars to be Total Losses
In an investor conference call on Friday, Progressive CEO Glenn Renwick said that the company had received about 6,000 auto claims so far related to Hurricane Sandy and that those claims are "probably going to be, more often than not, total losses."
Renwick told analysts on the call, "About just short of 80 percent of it is New York [and] New Jersey. The rest would be another 10 percent; Pennsylvania, Connecticut, and then obviously, other states that you all know are affected. That's sort of what we know right now."
"I think we all want to know sort of where Sandy settles out and I'm sure every insurance company right now is doing the best to give what they can," said Renwick, who estimated that two-thirds of the claims were caused by flooding and one-third were caused by wind.
He stressed that it was still to early to tell exactly what the full impact would be but said he expects to have a pretty good estimate by the time Progressive reports again in about 12 or 13 days (from Friday). "I suspect we're seeing half of the claims we're getting, or in that neighborhood. So, but there are people, clearly, as we all know, without power and so on and so forth. So these reporting patterns might be just a little bit different than the experience.
On Monday, State Farm told Bloomberg news that they had so far received 7,325 auto claims related to Sandy from New York alone.