Texas sustained $1.8 billion in 2014 first-half catastrophe losses—including $1.4 billion in Q2—to lead all states during what was generally a mild stretch for cats in the U.S.
PCS says Texas was a part of seven catastrophe events in 2014's first half. The three biggest were wind and thunderstorm events that occurred from March 27-29 ($375.8 million in insured losses in the state), April 2-4 ($761.2 million) and Jne 12-13 ($361.8 million).
Illinois and Pennsylvania followed Texas with $737 million and $677 million in first-half cat losses, according to Property Claim Services' Q2 2014 Catastrophe Review.
Overall, PCS says first-half cat activity hit 36 states, while losses, at $9.5 billion, were about in line with the 10-year average at $9.7 billion. PCS says this is the first time since 2010 cat losses were below $10 billion in the first half of the year, and the lowest losses have been since 2009.
While cat losses were just below the 10-year average, PCS says event frequency was slightly above. PCS designated 20 cat events in the U.S., compared to the 10-year average of 18.6. Three of the 20 events caused insured losses of more than $1 billion, and another seven exceeded $250 million.
A Feb. 21 blog post by Ted Gregory, PCS manager, says PCS considers a number of factors when determining if it will designate an event as a catastrophe, including whether it's likely to cause at least $25 million in insured losses and whether it will impact a significant number of insureds and insurers.
Sixty-three percent of first-half losses, or $6 billion, were from personal claims, while 20% were auto losses and 17% commercial. This, notes PCS, marks a shift from the first-quarter breakdown, when the polar vortex caused an outsized number of personal losses (75%) compared to commercial (23%) and auto (2%).
In Q2, PCS says it designated 13 cat events, all wind and thunderstorm with nine tornado events, compared to the 10-year average of 11.6 events. Insured losses totaled $6.5 billion, down from $7.2 billion in Q2 2013 and the lowest level since 2010.
The largest Q2 event was a mid-May wind and thunderstorm event that caused more than $1.5 billion in damage across 11 states, PCS says. That event hit Colorado and Pennsylvania hardest, causing $300.5 million in losses in each state.
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