Hurricane Florence brings back memories of last year’s devastation when a host of hurricanes wreaked havoc in parts of the United States. A hurricane season typically starts in June and lasts through November during a year, gathering strength in August and September. Colorado State University has predicted a below-normal season this year with a total of 12 named storms, 5 hurricanes, and 1 major hurricane.

The third quarter of a year generally bears the brunt of unprecedented catastrophes, which cause mass devastation. This August, Hurricane Lane ripped through Hawaii but its intensity subsided to a Category 3. Hurricane Florence has also been downgraded to a Category 2 as it approaches the East Coast per National Hurricane Center. Catastrophe modeler Risk Management Solutions estimated insured losses in the range of $15-$20 billion, stemming from Hurricane Florence.

Though Florence has been downgraded, yet destruction and its aftermath are expected to be massive. Per National Hurricane Center’s projected track, Florence has shifted somewhat south and west and could be the costliest storm ever to hit the nation. Georgia, alongside North Carolina and South Carolina, expected to be worst hit.

An analyst at Citigroup noted that North Carolina has the highest property and casualty insured premiums among the three states with $16 billion followed by Virginia at $13.6 billion and South Carolina at $9.5 billion. The analyst projects Travelers to incur losses of roughly $42 million for each $1 billion in insured losses followed by Allstate at $37 million, Chubb at $25 million and Progressive at $21 million.

The U.S. property and casualty insurance industry suffered net underwriting loss of $29.3 billion in 2017, wider than $5.5 billion loss incurred in 2016 according to A.M. Best. Unprecedented landfall of hurricanes Harvey, Irma, Jose, Maria together made 2017 the costliest year in term of catastrophe loss.

However, combined ratio — a measure of underwriting profitability — is estimated to be 99% for 2018, an improvement of 450 basis points year over year, per S&P Global Market Intelligence.