Virginia and Others Escape Earthquake
Columbus, Ohio, August 24, 2011: The earthquake that occurred in central Virginia was felt over a broad area on the east coast. The region escaped the earthquake without major damage. Catastrophe models forecast losses associated with the earthquake are expected to be less than $100 million. As other catastrophes in the area have recently caused billions of dollars in damage, the damage and losses associated with the earthquake seem small in comparison.
Earthquakes occur very rarely in the region and as such monoline earthquake premium by line in Virginia and the states contiguous to Virginia accounted for only approximately $120 million of direct premium written in 2010. Additional earthquake premium may have been reported as part of a package policy. Fortunately for policyholders affected in these states, insurers have a thorough understanding of these markets. Most of the companies that reported monoline earthquake in this region are affiliated with well-respected and financially stable groups. Lexington Insurance Company had over 15 percent of the direct premium written for the affected states and is the overall top monoline earthquake writer.
States Impacted by Recent Earthquake
2010 Direct Premiums Written – Earthquake
In DE, MD, NC, NJ, NY, OH, PA, VA and WV (Combined)
- New York — $34,479,175
Ohio — $28,122,128
Pennsylvania — $14,509,231
New Jersey — $12,770,457
Virginia — $11,172,289
North Carolina — $9,929,268
Maryland — $6,276,407
West Virginia — $1,561,880
Delaware — $886,451
TOTAL OF THESE STATES — $119,707,286
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Douglas Powell, Senior Financial Analyst