WHEN DISASTER STRIKES: RISK, MITIGATION STRATEGIES, AND RECOVERY

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1 WHEN DISASTER STRIKES: RISK, MITIGATION STRATEGIES, AND RECOVERY #LiveAtUrban

2 When Disaster Strikes: Risk, Mitigation Strategies, and Recovery April 11, 2018

3 CoreLogic 2017 Natural Hazard Risk Report /insights/natural-hazard-risksummary-and-analysis.aspx Innovate. Transform. Thrive CoreLogic, Inc. [NYSE:CLGX] All Rights Reserved. Proprietary. 3

4 According to the National Oceanic and Atmospheric Administration (NOAA), there were 16 individual weather and climate disaster events with losses exceeding $1 billion in the U.S. in Innovate. Transform. Thrive CoreLogic, Inc. [NYSE:CLGX] All Rights Reserved. Proprietary. 4

5 Excerpts from the 2017 Report Executive Summary Overall hurricane activity in the Atlantic was higher than average with 17 named storms, 10 hurricanes, and six major hurricanes. Flooding from Hurricanes Harvey and Irma resulted in an estimated $69 billion to $105 billion in residential and commercial damage. Approximately 75 percent of the damage to residential properties from Hurricane Harvey was uninsured, and approximately 80 percent of the damage to residential properties from Hurricane Irma was uninsured. Innovate. Transform. Thrive CoreLogic, Inc. [NYSE:CLGX] All Rights Reserved. Proprietary. 5

6 Excerpts from the 2017 Report Executive Summary Due to strong winds brought by Hurricanes Harvey and Irma, the land area impacted by severe winds was more than four times greater than in This was the third most active year for tornadoes since 2005 with 1,522 recorded tornadoes. The hail event in Denver, Colorado, was the worst this year with losses of $1.4 billion from approximately 150,000 auto insurance claims and approximately 50,000 homeowner insurance claims. Innovate. Transform. Thrive CoreLogic, Inc. [NYSE:CLGX] All Rights Reserved. Proprietary. 6

7 Excerpts from the 2017 Report Executive Summary Over 9 million acres burned in wildfire, the third highest in U.S. history. The largest fire, in terms of structures destroyed, was the Tubbs Fire in northern California, which burned 36,807 acres and 5,643 structures. Until 2017, the two worst wildfires in California history Tunnel in 1991 and Cedar in 2003 destroyed 5,720 structures combined. As of December 1, there were 818 identified earthquakes at a magnitude of 3.0 or greater across the country. Innovate. Transform. Thrive CoreLogic, Inc. [NYSE:CLGX] All Rights Reserved. Proprietary. 7

8 Excerpts from the 2017 Report Flood Losses from Hurricane events Innovate. Transform. Thrive CoreLogic, Inc. [NYSE:CLGX] All Rights Reserved. Proprietary. 8

9 Excerpts from the 2017 Report Flood risk goes beyond the Special Flood Hazard Area Total Properties Extreme Risk Very High Risk High Risk Moderate Risk Low Risk Very Low Risk Austin-Round Rock-San Marcos 701,325 7,233 15,628 52,622 74,451 66, ,281 Bay City 23, ,727 7,374 5,904 1,104 2,628 Beaumont- Port Arthur 194,610 1,990 19,774 39,096 67,090 19,531 47,129 Bryan-College Station 91, ,983 6,865 13,070 13,496 53,856 Corpus Christi 34, ,199 5,924 6,175 3,379 14,467 Houston-Sugar Land-Baytown 2,340,343 57, , , , , ,132 Victoria 42, ,847 7,064 7,751 4,198 20,913 Innovate. Transform. Thrive CoreLogic, Inc. [NYSE:CLGX] All Rights Reserved. Proprietary. 9

10 % of total area Excerpts from the 2017 Report Flood risk goes beyond the Special Flood Hazard Area South Texas/Louisiana - Harvey Affected Areas 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% Areas impacted Area at Risk 22.67% 12.48% 7.64% 2.00% 21.81% 17.91% 34.96% 28.22% 25.96% 11.52% 9.16% 5.66% Estimates are that 65% of the areas flooded from Hurricane Harvey were outside of a 100 year Special Flood Hazard Area 0.00% Extreme Very High High Moderate Low Very Low Flood Risk Rating Innovate. Transform. Thrive CoreLogic, Inc. [NYSE:CLGX] All Rights Reserved. Proprietary. 10

11 Excerpts from the 2017 Report 2017 Hurricane Activity Innovate. Transform. Thrive CoreLogic, Inc. [NYSE:CLGX] All Rights Reserved. Proprietary. 11

12 Excerpts from the 2017 Report Hurricane winds 2017 first time in 10+ years with significant U.S. landfall Innovate. Transform. Thrive CoreLogic, Inc. [NYSE:CLGX] All Rights Reserved. Proprietary. 12

13 Excerpts from the 2017 Report Wildfire activity continues to rise Innovate. Transform. Thrive CoreLogic, Inc. [NYSE:CLGX] All Rights Reserved. Proprietary. 13

14 Excerpts from the 2017 Report Earthquake activity Innovate. Transform. Thrive CoreLogic, Inc. [NYSE:CLGX] All Rights Reserved. Proprietary. 14

15 Excerpts from the 2017 Report Hail activity in 2017 Innovate. Transform. Thrive CoreLogic, Inc. [NYSE:CLGX] All Rights Reserved. Proprietary. 15

16 WHEN DISASTER STRIKES: RISK, MITIGATION STRATEGIES, AND RECOVERY #LiveAtUrban

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18 Weathering Hurricanes Harvey and Irma: The Financial Outcomes of 1 Million Families The JPMorgan Chase Institute draws transaction-level data from over 1 million checking account holders in Texas and Florida to provide a first-ever daily look at the impacts of Hurricanes Harvey and Irma on financial outcomes. Finding 1: Inflows were more than 20 percent, or roughly $400, lower than baseline in the week of landfall but recovered quickly in Houston, but not so in Miami. Finding 2: In aggregate, total outflows dropped by more than 65 percent around the day of landfall and by more than 30 percent, or roughly $500, in the week of landfall. Finding 3: Some categories (fuel, grocery, home) saw preparatory increases in spending, but in the week of landfall, consumers cut spending across most categories; healthcare spending dropped by more than 50 percent and remained lower 12 weeks after. Finding 4: Debt payments dropped by more than 15 percent in the week when the hurricanes hit and cumulatively remained lower than baseline 12 weeks after Hurricane Harvey and 10 weeks after Hurricane Irma. Finding 5: Checking account balances were 10 percent, or roughly $670, higher than baseline 12 weeks after Hurricane Harvey and remained steady 10 weeks after Hurricane Irma. 1

19 Finding 1: Inflows were more than 20 percent, or roughly $400, lower than baseline in the week of landfall but recovered quickly in Houston, but not so in Miami. 2

20 Finding 2: In aggregate, total outflows dropped by more than 65 percent around the day of landfall and by more than 30 percent, or roughly $500, in the week of landfall. 3

21 The hurricanes significantly disrupted healthcare spending and debt payment patterns. Finding 3: Some categories (fuel, grocery, home) saw preparatory increases in spending, but in the week of landfall, consumers cut spending across most categories; healthcare spending dropped by more than 50 percent and remained lower 12 weeks after. Finding 4: Debt payments dropped by more than 15 percent in the week when the hurricanes hit and cumulatively remained lower than baseline 12 weeks after Hurricane Harvey and 10 weeks after Hurricane Irma. 4

22 Finding 5: Checking account balances were 10 percent, or roughly $670, higher than baseline 12 weeks after Hurricane Harvey and remained steady 10 weeks after Hurricane Irma. 5

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24 WHEN DISASTER STRIKES: RISK, MITIGATION STRATEGIES, AND RECOVERY #LiveAtUrban

25 WHEN DISASTER STRIKES: RISK, MITIGATION STRATEGIES, AND RECOVERY #LiveAtUrban