Damage from Hurricane Francine is expected to be manageable for property/casualty insurers as large population centers will be spared the worst of the storm's damage.

Privately insured damage from Hurricane Francine is estimated at nearly $1.5 billion, catastrophe modeler Karen Clark & ​​Co. said.

According to Moody's Ratings, Francine's insurance losses will be easily manageable. Primary insurers will bear the bulk of losses from the hurricane, the ratings agency said, adding that regionally focused airlines would be hardest hit.

Francine made landfall in Terrebonne Parrish around 5:30 p.m. CST on September 11 as a Category 2 hurricane with maximum sustained winds of 100 mph before weakening to a tropical storm on the morning of September 12 as it passed through Mississippi . The storm hit well west of New Orleans, avoiding damaging winds. Had there been wind damage in New Orleans, Francine would have resulted in a much higher loss event, KCC said.

Louisiana, Terrebonne, Lafourche and Plaquemines parishes experienced storm surge heights of over 4 feet along their coast.

Moody's expects a significant portion of losses along the Louisiana coast to be absorbed by Louisiana Citizens, the government-sponsored insurer of last resort. Louisiana Citizens does not offer flood insurance.

Moody's added that P/C insurers face potential claims on personal automobiles, commercial vehicles, watercraft and other insured assets.

Industry ratings agency AM Best said it expects the majority of losses from Hurricane Francine to be borne by primary insurers as reinsurance premiums shift. AM Best said the storm is being viewed as a flooding event rather than a wind event.

Best's Commentary, Growing Gulf Coast-Focused Insurers Face Key Challenge in Hurricane Francine, noted that there may be pockets of concentration where insurers with higher reliance on reinsurance could see a greater impact.

Francine is the sixth hurricane to hit Louisiana in the last five years.

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Catastrophe, natural disasters, loss of profits, hurricane