Reinsurance News

Analysis from Milliman concludes that hurricane Milton will end up a relatively minor catastrophe loss event for the insurance-linked securities (ILS) market, based on an estimate of insurance market losses in the $20 billion to $40 billion range.

Moody’s RMS Event Response has estimated that the total U.S. private market insured losses from the recent Hurricanes Helene and Milton will likely range between $35 billion and $55 billion.

According to analysis by Morningstar DBRS, the total private and public insurance market loss from hurricane Milton is expected to fall in the upper-half of a $30 billion to $60 billion range, with flood insurance losses to the NFIP expected to be up to $10 billion of the total.

According to analysis from ICEYE, the provider of satellite data and services to inform decision-making and analysis, more buildings may have been impacted by flooding from hurricane Milton in Florida than was seen with hurricane Helene.

Analysis undertaken by specialist investment manager Twelve Capital suggests an insurance industry loss in the range of $20 billion to $50 billion from hurricane Milton, with a 0% to 4% principal loss possible for the catastrophe bond market.

Differing from the views of some other equity analysts, the Jefferies team believe that hurricane Milton would need to result in an insurance industry loss of above $50 billion for it to cause any hardening of property reinsurance at the January renewals.

While industry losses from hurricane Milton may not be as high as had initially been feared, the storm’s impacts in Florida are still expected to be a loss in the tens of billions of dollars, and alongside loss experience in the sector to-date this can still drive property catastrophe reinsurance rates higher at the January […]

Most of the 1940’s Act registered US mutual investment funds that allocate to catastrophe bonds and other insurance-linked securities (ILS) reduced their net asset values (NAVs) a little further yesterday as hurricane Milton approached.

Despite the impact of now two US hurricanes that are set to drive losses in the double-digit billions each, being Helene and now Milton, Tanja Wrosch, Head of Cat Bond Portfolio Management at investment manager Twelve Capital has said that catastrophe bond funds can still finish the year positively.

Commenting on hurricane Milton post-landfall, catastrophe bond fund manager Icosa Investments has said that it anticipates the impact to the catastrophe bond market will be below 5%.