It’s recently come to light through a 10Q report that back in March Montpelier Re invested in a hurricane option on seasonal futures traded in the Chicago Mercantile Exchange in an effort to protect itself from exposure to eastern U.S. hurricanes during the hurricane season (1st June – 30th November. The maximum recovery under the option is $5m.
It’s interesting as they still have catastrophe bond cover through their December 2005 Champlain Ltd. transaction which covers them till the end of this year. This leads me to think that they are either attempting to bolster that cover for this hurricane season or just dipping their toes in the new OTC hurricane futures market to see how it could benefit them in the future.
View all of our Artemis Live video interviews and subscribe to our podcast.
All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.
Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.
