U.S. insurers are expected to face several hundred million dollars in losses following a series of severe storms that moved from Texas through the southeastern United States between April 2 and April 7, according to a report from AM Best, citing data from Aon.
The National Weather Service recorded nearly 1,500 reports of tornadoes, hail, and strong winds during that period. More than 880 of those reports came on April 2, mostly along a corridor stretching from North Texas to southwestern Pennsylvania.
Aon cited NWS data confirming approximately 128 tornadoes, with 33 rated EF-2 or higher. One EF-3 tornado in Selmer, Tennessee, damaged or destroyed more than 330 structures.
In Kentucky, a tornado affected parts of the Louisville metro area. In Frankfort, the Kentucky River overflowed its banks, impacting residential and commercial areas. “Numerous historic homes and businesses were inundated,” Aon noted, including the Buffalo Trace distillery.
Flooding from Texas to Ohio was also reported. Aon said limited access to some areas may result in total losses exceeding initial estimates.
The April 2 to 7 event followed an earlier storm system that developed on March 29 in Texas and Oklahoma and extended into Ontario, Canada, the report said.
In Texas, the storms affected several counties and prompted response efforts. Governor Greg Abbott directed the Texas Division of Emergency Management to work with the U.S. Small Business Administration on preliminary damage assessments in northeast Texas communities to determine eligibility for federal disaster assistance.
The U.S. Department of Agriculture announced that disaster assistance programs are available to agricultural producers in the state. Programs include the Livestock Indemnity Program, which provides support for weather-related livestock deaths beyond normal levels.
The Texas Windstorm Insurance Association is also seeking $375 million through a new catastrophe bond, Bluebonnet Re 2025-1, to expand its reinsurance coverage for future severe weather events.
