Atlantic Hurricane Season

Major hurricane Melissa has intensified further to sustained winds of 185 mph and its minimum central pressure has now deepened to 892mb, which with the storm’s eye now well into the parametric boxes of Jamaica’s $150 million IBRD CAR Jamaica 2024 catastrophe bond suggests a 100% payout of principal is likely.

As major hurricane Melissa bears down on the Caribbean island nation of Jamaica, the significant intensity of the storm could activate the country’s parametric catastrophe bond and insurance protection triggers which, should they pay out, will provide a valuable source of financial liquidity and recovery funding at a particularly challenging time for the country.

Jamaica’s $150 million IBRD CAR Jamaica 2024 parametric World Bank catastrophe bond has been marked down on secondary pricing sheets and the US National Hurricane Center forecast cone still shows a major hurricane Melissa landfall.

The government of Jamaica has raised a hurricane watch for what is currently tropical storm Melissa and with the National Hurricane Center warning that “significant strengthening is expected” and some forecast models showing a particularly intense storm nearing the island, it brings the country’s World Bank catastrophe bond and parametric insurance into focus.

According to a recent commentary from Man Group, the global alternative and active investment manager, the rising frequency of rapid intensification is posing new challenges for catastrophe bond investors.

Hurricane Imelda has strengthened as it bears down on Bermuda today, with the National Hurricane Center now reporting current sustained winds of 100 mph and some additional intensification as possible before the storm passes close to the island tonight.

The tropics continue to become more active and Invest 94L, which is anticipated to become tropical storm Imelda in the next day or so, is seen as a potential US landfall threat. Some forecast models suggest a low-category hurricane landfall on the southeast coastline, with the Carolinas seen as one possible outcome. It is early […]

Were the 1926 Great Miami hurricane to occur again today, analysis from catastrophe risk modelling specialists Karen Clark & Company (KCC) suggests that more than $5 trillion in insured property value would be affected by hurricane force winds, driving well over $200 billion in insurance and reinsurance market losses.

Hurricane Erin is now in the Atlantic, notably the first tropical storm to achieve hurricane status this season. Catastrophe bond and insurance-linked securities fund manager Twelve Securis has highlighted that there is a strong consensus among the models that Erin will stay far enough away from the US coastline to avoid any significant impacts.

The fifth named tropical storm of the 2025 Atlantic hurricane season has now formed, as Erin has now been named. The US National Hurricane Center forecast cone suggests we could see hurricane Erin by Wednesday and a potential major hurricane Erin by this weekend, but with its exact direction of travel very uncertain at this […]