catastrophe losses

The ongoing winter storm event and freezing temperatures that are affecting tens of millions of people across the United States have the potential to contribute to the gradual erosion of aggregate limits in certain catastrophe bonds, investment manager Twelve Securis has highlighted.

Catastrophe data aggregator PERILS has issued its fourth and final industry loss estimate for Windstorm Éowyn, which affected the British Isles during the period of January 24th – 25th 2025, putting the insured market loss at €765 million.

While headline global insured catastrophe loss estimates are all pointing to a tally below averages, reinsurance broker Gallagher Re has highlighted that for the United States the $100 billion of insured losses experienced in 2025 was around 12% above the 10-year average.

Insured catastrophe losses in Canada reached CAD $2.4 billion for full-year 2025, marking the ninth-largest loss year on record for the country, placing it at the lower end of the past five years of annual loss totals, according to an estimate from CatIQ, Canada’s insured loss and exposure indices provider.

According to insurance and reinsurance broking group Aon, global insured losses from natural disaster events in 2025 reached $127 billion, marking the sixth consecutive year that insurance payouts have exceeded the $100 billion threshold.

US insurer Allstate has announced an estimated pre-tax catastrophe loss for the fourth quarter of 2025 of $209 million, which lifted the total for the current annual aggregate risk period for its catastrophe bonds to $2.757 billion while the run-rate of losses slowed in recent months.

According to global reinsurance company Munich Re, 2025 was the costliest year ever for insured losses from non-peak catastrophe perils, making up the bulk of the total as global insured natural disaster losses reached around US $108 billion.

Suncorp Group, the Australian primary insurance giant, has provided an update on its catastrophe and severe weather losses from the first-half of its financial year, having now gone well-over budget, but seemingly with only occurrence reinsurance to benefit the company, only one loss event is set to drive a recovery at this time.

Severe convective storms and hail across Queensland and New South Wales, Australia in late November is initially estimated to have resulted in an insurance industry loss of AU $2.663 billion (around US $1.78bn) by catastrophe data aggregator PERILS AG.

With 2025 marking the fifth consecutive year in which global catastrophe claims have exceeded $100 billion, analysts at J.P. Morgan emphasised that the impact on reinsurers has been less damaging, in the main because higher cedant retentions continue to shift a greater share of losses back to primary carriers.