Cat bond fund news

The net asset values (NAVs) of a number of the 1940’s Act registered US mutual investment funds that allocate to catastrophe bonds and other insurance-linked securities (ILS) declined again yesterday, with some cutting for the second day running, others for the first time.

Analysts at Goldman Sachs believe that a hurricane Milton insurance industry loss of above $25 billion will be sufficient to change the pricing narrative for property catastrophe risks at the end of year reinsurance renewals.

Catastrophe bond fund manager Icosa Investments has published some scenario modelling outputs that show the difference between best and worst case hurricane Milton losses, ranging from industry losses of $15bn to $150bn+, with the hit to the cat bond market anything from zero to as much as 15%.

While uncertainty remains over the eventual loss from hurricane Milton, catastrophe bond fund manager Plenum Investments has said it could be around Ian levels, but even then the impact to the cat bond market and its cat bonds funds would only be deemed “moderate” and projections show returns earned so far this year can easily […]

According to specialist insurance-linked securities (ILS) investment manager Euler ILS Partners, there is a roughly 33% chance that industry losses from hurricane Milton rise above $50 billion and if that were to happen the manager believes it could drive a very hard market across reinsurance.

This morning hurricane Milton has strengthened back to a Category 5 major hurricane overnight, with sustained wind speeds of 160 mph and gusts estimated at over 200 mph. Last night, Milton wobbled slightly south of the NHC forecast cone center line, but remains locked onto Tampa Bay, with a track consensus just slightly to the […]

In his latest update yesterday evening, Andrew Siffert, Senior Meteorologist at broker BMS Group, explained that he feels it is safe to say that hurricane Milton is likely to be at least a $20 billion insurance market loss event, while even a best possible scenario of a wind shear impacted Milton going into Tampa Bay […]

Major hurricane Milton continues to bear down on Florida and in recent updates from the National Hurricane Centre warning areas for the Florida Peninsula have been expanded, with an expectation the storm could sustain hurricane wind speeds all the way as it crosses the state from west to east.

Yesterday saw a number of the 1940’s Act registered US mutual investment funds that allocate to catastrophe bonds and other insurance-linked securities (ILS) declining, presumably as asset managers cut their net asset values (NAV’s) on the potential for losses from hurricane Milton.

We understand from sources that, as early as yesterday, some catastrophe bond and insurance-linked securities (ILS) investment fund managers began exploring their options to free up cash from their portfolios in order to be ready for any potential losses, or to take advantage of market opportunities that emerge, due to now major hurricane Milton.