Liberty LatAm settles $108.5M in hurricane-related insurance claims
Liberty Latin America has reached a settlement agreement with its third-party insurance provider for $108.5 million in net damages related to Hurricanes Irma and María last year, the company confirmed.
The gross amount agreed to in December
2018 totaled $138.5 million, but Liberty deducted $30 million in self-insurance
from the total amount.
“We have received net advance
payments from our third-party insurance provider totaling $50 million, of which
$45 million was provided to Liberty Puerto Rico and $5 million was provided to
Cable & Wireless,” company executives said.
“Liberty Latin America expects
to receive the remaining $58.5 million in Q1 2019, which will mainly be split
between C&W and Liberty Puerto Rico,” it added.
With respect to Liberty Latin
America’s financial results, the proceeds from the settlement will be allocated
between recoveries for business interruption and operating expenses. It will
also report recoveries associated with property damages, which will be
reflected as a gain within impairment, restructuring and other operating items,
net, it confirmed.
“There will be no impact on
revenue reported in 2018 or 2019. Of the net third-party insurance proceeds,
over half is expected to benefit our 2018 [financials],” the company stated.