Swiss Re Insurance-Linked Fund Management

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Blue Capital: No material loss expected from Oklahoma tornado


Another reinsurance-linked investment manager has come forwards with a statement regarding the tornado which struck Moore, Oklahoma on the 20th May. Blue Capital Management, the third-party capital management arm of Bermuda based reinsurer Montpelier Re that specialises in catastrophe reinsurance-linked investment products for institutional and retail investors, has said it expects no material loss from the event.

The statement from Blue Capital said:

Blue Capital has commenced its normal post-event procedures to estimate any loss to the Company. Based on current information, we do not expect this loss event to be material to the Company. We will provide an estimate of any potential loss in due course.

The tornado which struck Moore, a suburban town of Oklahoma City, on Monday 20th May caused widespread devastation and loss of life. The impact in dollar terms is as yet unknown, but it has been widely reported that the insured losses from this event are likely to be greater than $2 billion and many suggest it will be more impactful to the reinsurance market than 2011′s Joplin tornado.

So far a number of ILS and collateralized reinsurance investment managers have come forwards and said that they do not expect to suffer any meaningful loss, if any loss at all. It looks like the event, while severe and likely to cause one of the most significant single loss events of the year, will be largely contained within insurers and reinsurers own losses. The investment managers we cover here on Artemis tend to operate in the higher loss layers, although as we said before this event could aggregate as a qualified loss for some catastrophe bonds.

We will continue to update you as more information on the impact of the Moore tornado becomes available. Our other articles related to this event can be found below, most recent at the bottom.

Moore, Oklahoma City, hit by devastating tornado

Oklahoma tornado may cause catastrophe bond price movements

Credit Suisse: losses from Moore tornado under $5 billion, no ILS fund impact

Insured losses from Moore, Oklahoma tornado could surpass Joplin

LGT Insurance-Linked Strategies: No impact expected from Oklahoma tornado

CATCo: No impact from Oklahoma tornadoes if insured losses below $5 billion

EQECAT: $2Bn to $5Bn insured losses from recent tornado events, including Oklahoma

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