TWIA Board Reviews 2025 Budget After $455 Million Loss from Beryl

The Texas Windstorm Insurance Association Board of Directors met in November to review information related to the agency’s 2025 budget.

The meeting presented new information on TWIA losses from 2024 storms as projected policy growth in the coming year.

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 ended September 30, 2024, more than double the $81.6 million budgeted through September 30.

TWIA anticipates higher reinsurance costs next year to secure additional coverage due to the depletion of the Catastrophe Reserve Trust Fund.

In 2024 TWIA had access up to $6.5 billion of reinsurance for a 100 Year Probable Maximum Loss. TWIA’s reinsurance spending is projected to increase next year to allow access up to $7.8 billion.

TWIA 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 272,000 policies on December 31, 2024, to 285,000 at year-end 2025, an increase of about 13,000 policies or 4.8%.

TWIA’s Board will consider final action regarding the budget at its December 10 meeting in Corpus Christi.