Ophelia losses less than $500 million

Carvill’s ReAdvisory, a reinsurance intermediary, predicts losses from Hurricane Ophelia “are likely to be light” up to a maximum of $500 million, A.M. Best reports.
On-again, off-again Hurricane Ophelia, a Category 1 storm, is continuing to skirt the North Carolina coast for a second day, bringing drenching rains to the state.
A.M. Best cited Steve Smith, an atmospheric physicist and vice president at Carvill’s ReAdvisory, saying losses as a result of Ophelia could range as high as $500 million, but a lower loss is far more likely. His estimate is based on previous Category 1 hurricanes to hit North Carolina.
For example, 2004’s Hurricane Gaston caused $15 million in losses in North Carolina, while 1999’s Hurricane Dennis cause $25 million. Even 2003’s Isabel, a strong Category 1 when it struck North Carolina, caused only $170 million in losses.
As of Sept. 15, Ophelia had weakened slightly, with maximum sustained winds near 80 mph, the National Oceanic and Atmospheric Administration reported. A slow weakening was expected to continue.
Hurricane Ophelia’s force winds extend to 40 miles from the center, and tropical storm force winds extend to 140 miles from the center, NOAA said.
Smith said dry air and moderate wind shear would negate any warm water that could fuel Ophelia.