Greetings:
The TWIA Board of Directors met on November 13 to review information related to the Association’s 2025 budget. Select highlights of the budget presentation include:
- The ultimate loss and loss adjustment expense estimate for Hurricane Beryl is $455 million as of September 30, 2024. This amount is roughly equivalent to the current balance in the Catastrophe Reserve Trust Fund.
- Severe convective storms from January through June and other non-hurricane losses totaled $172 million for the nine months that ended September 30, 2024, more than double the $81.6 million budgeted through September 30.
- Policy counts, exposures, and premiums have increased steadily since February 2021. This growth is expected to continue due to the ongoing contraction in coverage offered by the private market. 2025 written premiums are projected to be $779 million.
- The number of policies in force is projected to increase from the forecast of 271,964 policies on December 31, 2024, to 284,975 at year-end 2025, an increase of 13,011 policies or 4.8%.
- The Association anticipates higher reinsurance costs for 2025 because of the need to secure additional coverage due to the depletion of the Catastrophe Reserve Trust Fund to pay losses and loss adjustment expenses from Hurricane Beryl and increased policy exposures.
The Board will consider final action regarding the budget at its December 10 meeting in Corpus Christi.
The TWIA General Manager announced that the Texas Insurance Commissioner has appointed Greg Smith to the Board as a First Tier Coastal Representative. Mr. Smith is the CEO of Pioneer Resorts Inc. in Port Aransas and a former member of the Corpus Christi City Council. TWIA staff conducted Board member training for Mr. Smith at the meeting.
The agenda, meeting materials, and archived recording for the Board meeting are available on our Meeting Library page.
Should you have any questions, please contact me at DDurden@twia.org.or (512) 505-2255.
Sincerely,
David Durden
General Manager
Texas Windstorm Insurance Association
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