The Florida Office of Insurance Regulation (OIR) says that insured losses estimated off claims data submitted by primary insurers in the state after hurricane Ian now stand at almost $10.3 billion.Read the full article
Hurricane Ian 2022
Hurricane Ian roared ashore in Florida as a major Category 4 storm, with sustained winds of up to 155 mph on September 28th, 2022.
Hurricane force winds raked a wide area of Florida’s west coast, while storm surges of up to 12 feet devastated the region around Fort Myers.
Early industry loss estimates ranged from as low as $20bn to as high as $80bn, but eventually more consensus emerged for an industry loss somewhere in a range from $30bn to $50bn.
Losses are expected across the reinsurance capital spectrum, with significant impacts for insurance-linked securities (ILS) funds and some catastrophe bonds.
For our latest Artemis Live video interview, we discussed the state of the catastrophe bond market after hurricane Ian and the opportunities now available to investors with Florian Steiger, Head of Cat Bonds at specialist ILS and reinsurance asset manager Twelve Capital.Read the full article
Catastrophe bond funds, as measured by the Plenum CAT Bond UCITS Fund Indices, have gained another 0.60% on average in the last week, as valuations continue to be adjusted upwards to take account of lower loss expectations for recent hurricane Ian.Read the full article
Based on third-quarter data provided by syndicates operating there, Lloyd’s has estimated that hurricane Ian losses to the market will total between $2.3 billion and $3 billion, on a net basis.Read the full article
Florida’s property insurer of last resort Citizens Property Insurance Corporation has significantly increased its loss estimate for hurricane Ian, raising it to $3.8 billion, a level at which some private market reinsurance capacity will likely come into play, but leading it to believe its catastrophe bonds won’t be triggered.Read the full article
The secondary market for catastrophe bonds has again demonstrated that timing can be everything when it comes to trading in liquid markets, or conversely that some investors may get proven to have been prescient with their trade selections, when it comes to catastrophe bond market losses from hurricane Ian.Read the full article
Catastrophe bond funds, as measured by the Plenum CAT Bond UCITS Fund Indices, have gained further ground in the last week of reported data, jumping more than one percent on average at the last available calculation point of November 4th.Read the full article
Plenum Investments has slashed hurricane Ian loss expectations for its catastrophe bond investment funds, saying that initial estimates from sponsors are coming in “significantly lower than our original expectations”, leading it to believe the draw-down could be less than half the initial estimates.Read the full article
The U.S. Federal Emergency Management Agency (FEMA) has issued an estimate of flood insurance claims for the National Flood Insurance Program (NFIP) from hurricane Ian, giving a range of $3.5 billion to $5.3 billion, at which level the catastrophe bonds wouldn’t face losses.Read the full article
United Insurance Holdings Corp. (UPC Insurance) has revealed that it expects to cede roughly $501 million of its hurricane Ian losses to open reinsurance market partners and for the event only has around $9.3 million of limit left in its main tower.Read the full article