The NFIP has $3B on hand – not enough to cover its losses from Sandy. From Reuters:
The Federal Emergency Management Agency will probably need to request a congressional bailout of its flood insurance operations, as claims from superstorm Sandy could be as much as four times greater than the program’s capacity, a top FEMA official said on Wednesday.
That’s $12B in flood losses, meaning the storm will leave the feds $9B in the hole.
Well, an additional $9B, because the flood program had to borrow $15B to cover Katrina claims.
Meanwhile, RMS is telling clients insured losses will be between $20B and $25B, Bloomberg reports.
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