catastrophe bonds


Hurricane Irma to stress-test third-party capital staying power: S&P

The potential impact of major hurricane Irma, which now has Category 3 status and 130 mph+ winds as it tracks towards Florida, could be a test of the permanence of third-party capital in the global reinsurance sector, according to Standard & Poor’s (S&P). In a new report, international financial services ratings read the full article →

As Irma tracks west, impact to ILS market lessens: Brookes, RMS

As major hurricane Irma continues to track west and the forecast path for the storm predicts the expected turn to the north towards Florida will be later, resulting in the landfall position shifting west, the potential impact to the ILS and catastrophe bond market lessens, according to Ben Brookes RMS read the full article →

Increased use of retro to limit reinsurers’ Irma exposure: A.M. Best

International ratings agency, A.M. Best, has highlighted the increased use of retrocessional reinsurance protection amongst global reinsurers, including from the capital markets, which could limit some exposure to hurricane Irma as it maintains its track towards Florida, U.S. In an industry note on the potential impact of major hurricane Harvey, which read the full article →

Cat bonds drop 16% on hurricane Irma, prices discounted heavily

Hurricane Irma's threat to Florida saw the catastrophe bond market drop 16% yesterday, their biggest single days decline on record, as the ILS market and its investors recognised the severe threat the major hurricane poses to their investments. According to Bloomberg data the Swiss Re Cat Bond Price Return index dropped read the full article →

Hurricane Irma bearing down on Florida with 130mph+ winds

Updated - 11:00 AM UTC on September 10th: Major Hurricane Irma continues on its path towards the state of Florida, slightly weakened after striking Cuba but still with winds sustained at 130 mph with higher gusts, and a chance of some further intensification before it strikes the Florida Keys in read the full article →

Stone Ridge reinsurance and ILS fund drops 8%+ on Irma threat

According to a Bloomberg article one of the mutual ILS funds managed by New York based Stone Ridge Asset Management has fallen 8% on the approach of hurricane Irma, as the manager marked it down in expectation of losses. Bloomberg reported that an investor in the Stone Ridge Reinsurance Risk Premium read the full article →

Billions of catastrophe bonds at risk from Hurricane Irma

There are many catastrophe bonds that are potentially at risk from a major landfalling Hurricane Irma, with as much as $14 billion of the outstanding cat bond market holding some level of exposure to Florida or U.S. east coast named storms and hurricanes. As hurricane Irma continues on its track towards read the full article →

Hurricane Irma track aims at Miami, a $131bn realistic disaster scenario

In the latest updates to the Hurricane Irma forecast path the Miami-Dade area of Florida coastline is firmly in the center of the forecast cone, with Irma predicted to hit somewhere around Biscayne Bay to Miami Beach, the results of which are estimated as a $131 billion realistic disaster scenario read the full article →

Hurricane Irma leaves trail of destruction, Florida still in its path

Updated - 21:00 UTC September 8th: Major category 5 Hurricane Irma, which became the second strongest storm in history in the Atlantic, has battered the Leeward Islands of the Caribbean leaving a trail of destruction, as it continues on its route towards Florida still packing 155 mph winds. The forecast for read the full article →

Cat bonds a hedge against post-Irma reinsurance rate rises: Heritage CEO Bruce Lucas

The fixed and multi-year pricing of its catastrophe bonds acts as an effective hedge against future reinsurance rate rises, according to Heritage Insurance CEO Bruce Lucas, something that is especially pertinent as major hurricane Irma tracks towards the United States. Like other Floridian primary insurers, Lucas' company wants to highlight its read the full article →