Massy to pay out US$250mn in storm claims

Barbados-based Massy United Insurance, one of the Caribbean's larger insurers, has announced it will pay out "in excess of US$250mn to hundreds of customers" affected by Hurricanes Harvey, Irma and María.

The firm, which has operations in 18 territories, said in a statement that customers filed claims for significant losses with Irma and María in nine markets: Antigua, Anguilla, St. Maarten, St. Kitts, British Virgin Islands, Turks & Caicos, Bahamas, Dominica and Montserrat.

Massy said in the statement it had received "in excess of a thousand claims from clients with damage" and had paid 80% of these by mid-December "with the goal to have the remainder settled by the end of this month."

The firm was eager to point out the speed at which it had representatives on the ground in storm-hit territories, adding they had also provided relief supplies to victims "through collections and donations by other markets" where it operates.

The payout is relatively small compared to the total estimated insured losses in the region. Catastrophe modeler AIR -Worldwide recently put its forecast for total insured losses from María at between US$27bn to US$48bn.

Caribbean insurers are also deeply backed by reinsurance in general due to the exposed nature of the geography, with high population centers near coastlines.

Insurer ratings agency A.M. Best last reaffirmed Massy's financial strength (A-) and long-term issuer (a-) ratings on April 26 this year, giving the firm a stable outlook as well.

A.M. Best noted that as of the fiscal year ending Sept. 30, 2016, the firm held US$52.7bn in net written premiums, reporting a net income of US$5.4bn and a combined ratio of 93.4%.