Property market faces $200mn Galliano Marine Ida loss
Maritime firm Galliano Marine Services has notified its insurers of losses on its property insurance that are expected to blow through the programme’s $200mn limit, this publication can reveal.
Galliano Marine Services, doing business as Edison Chouest Offshore, provides marine transportation solutions and owns several properties in the Galliano area in southeastern Louisiana, on the Mississippi Delta.
Sources said the broker on the programme is Gallagher, and the risk is placed across the US and London property markets.
Loss information has been slow to emerge after Hurricane Ida, which struck Louisiana as a Category 4 hurricane in August. It went on to bring severe rainfall to the New York area, leading to flash floods and loss of life.
One of the few risk losses to come to light after the storm is from Tulane University, which has notified its insurers of an approximate $100mn loss on its property programme, as revealed by this publication earlier this month.
The Metropolitan Transportation Authority (MTA) in New York has also estimated $75mn to $100mn in flooding damage across its subways, according to local media reports of the MTA’s September board meeting.
How much of this loss will be transferred to the private market, however, remains unclear. The MTA is reportedly seeking relief from the Federal Emergency Management Agency, although figures have not been disclosed.
The patchwork loss intelligence has led the market to question whether Ida will represent an exceptionally “slow burn” loss, or, at the extreme end, whether estimates of a $30bn-plus loss event are overblown.
Many in the London D&F market have told this publication they would have expected a greater volume of claims by this time for an event of this size, with most risk losses to date being partial losses.
Some carriers have started to disclose their Ida loss tolls ahead of Q3 results season, which started in the US this week.
Lancashire reported Q3 losses of up to $185mn related to a string of recent weather events including Ida and European storms Bernd, Volker and Xero.
Swiss Re has estimated its claims burden from Hurricane Ida will be $750mn, as it pegged the industry insured loss at $28bn-$30bn. Munich Re has estimated its own Ida claims tally at EUR1.2bn ($1.4bn).
Gallagher declined to comment. Galliano Marine was contacted for comment.