catastrophe bonds

The remaining slice of in-force notes from Bermudian reinsurance firm RenaissanceRe’s $140 million Series 2017-1 issuance of notes from its Fibonacci Reinsurance Ltd. sidecar-like vehicle have had their maturity extended for another three months.

The remaining in-force notes of Bermudian reinsurance firm RenaissanceRe’s $140 million of Series 2017-1 notes issued by Fibonacci Reinsurance Ltd. have been extended again, presumably as loss development continues.

Hurricane Irma slammed into Florida on Sunday as a Category 4 storm with 130 mph winds, hitting the Florida Keys first before making a second landfall on the southwest coast of the Peninsula. Coastal flooding from storm surge has been reported on both coastlines, including areas such as the Miami Brickell district.

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).

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 Vice President of Capital Markets […]

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.

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.

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 the coming hours.

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.

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.