TAMPA, Fla.--(BUSINESS WIRE)--1347 Property Insurance Holdings, Inc. (NASDAQ:PIH) (“PIH” or “the Company”), a property and casualty insurance holding company offering specialty insurance to individual and commercial customers in Louisiana and Texas through its wholly-owned subsidiary, Maison Insurance Company (“Maison”), is providing an update regarding the storm activity that has been widely-reported in the state of Louisiana from August 11, 2016 to August 15, 2016. Maison has many policyholders who have been impacted by this event.
While the ultimate cost and impact on the Company’s financial results cannot be determined with certainty at this time, the Company expects to incur losses with respect to insurance claims related to damage resulting from these storms. This event primarily impacted the Company's manufactured/mobile home policies which can be endorsed to cover the peril of flood. As a reminder, our Homeowner’s multi-peril product does not cover the peril of flood; however, we have experienced some homeowner policy claims related to wind damage.
The Company’s catastrophe reinsurance program is structured so that its retention is set at $5,000,000 for a single event, thus, based on our early analysis, the pre-tax losses incurred by the Company, net of reinsurance, are not expected to exceed $5,000,000. The Company has estimated this initial potential loss based on current predictive models and claims experience. The Company also believes that it may have recoveries available to it under its per-risk reinsurance program.
Doug Raucy, Chief Executive Officer, stated, “We are actively fielding and evaluating claims while working with our agents and reinsurance partners to quickly aid our policyholders following this period of storm activity. Our priority, as always in challenging situations like this, is to deliver the high level of customer service that our clients expect. We continue to maintain a strong capital position and intend to provide regular updates to our investors throughout the process.”
About 1347 Property Insurance Holdings, Inc.
1347 Property Insurance Holdings, Inc. is a property and casualty insurance holding company incorporated in Delaware. The Company provides property and casualty insurance in Louisiana and Texas through its wholly-owned subsidiary Maison Insurance Company. The Company’s insurance offerings for personal and commercial customers currently include homeowners, wind and hail only, manufactured home and dwelling fire policies.
Forward Looking Statements
This press release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that are not historical facts, and involve risks and uncertainties that could cause actual results to differ materially from those expected and projected. Words such as "expects", "believes", "anticipates", "intends", "estimates", "seeks" and variations and similar words and expressions are intended to identify such forward-looking statements. Such forward-looking statements relate to future events or future performance, but reflect Company management's current beliefs, based on information currently available. A number of factors could cause actual events, performance or results to differ materially from the events, performance and results discussed in the forward-looking statements. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward looking statements, please refer to the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. Except as expressly required by applicable securities law, the Company disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information, future events or otherwise.