hurricane Irma 2017

One of reinsurance firm Everest Re’s in-force catastrophe bond tranches, a $200m Kilimanjaro Re Ltd. (Series 2014-1) Class B tranche of notes, has been downgraded and had its ratings placed on watch due to the aggregation of industry losses from recent hurricane events.

Primary insurance giant and specialist reinsurance player Chubb has revealed an update to its estimate of third-quarter 2017 catastrophe losses, adding $220 million for hurricane Maria, $25 million for the Mexico earthquakes and $107 million from other losses during the quarter to the $1.6 billion it already announced for hurricanes Harvey and Irma.

Reinsurance and retrocessional reinsurance investment manager Markel CATCo Investment Management has announced this morning its intention to raise funds, to take advantage of pricing opportunities being seen in the retrocessional reinsurance market and its requirement for new capital.

A number of equity analyst teams have adjusted their expectations for price hardening as a result of the impacts of hurricane Maria with the potential for reinsurance price rises, at least in localised property catastrophe regions, right through 2018 now anticipated, but these are not expected to be high enough to provide the payback some […]

A number of insurance-linked securities (ILS) and collateralized reinsurance investment funds are facing a negative return for August 2017, as losses and loss expectations from hurricane Harvey resulted in write-downs on investment positions, causing some funds to be negative for the month.

Global insurance and reinsurance firm Chubb revealed an estimation of its losses from hurricane Harvey and Irma’s impacts on the United States and the Caribbean, with the firm suggesting up to $1.6 billion of loss, pre-tax and net of reinsurance, some of which is likely to fall to its total return reinsurance vehicle ABR Re.

Florida’s Citizens Property Insurance Corporation said yesterday that it expects to have to pay around $1.23 billion of insured losses for claims from Hurricane Irma, but expects to pay for this out of surplus, suggesting the coastal account has not had a big enough hit to eat into its reinsurance protection.

Lloyd’s of London reported its first-half results this morning and once again they clearly reflect the challenges of a softened market environment, with profits shrinking 17% to £1.22 billion, even when volumes of risk traded through the market are up and the underwriting result had improved.

The total amount of insured losses estimated from insurance claims filed in Florida following hurricane Irma has now reached over $3.85 billion, up another 25% since September 21st according to the insurance regulator.

The approach, impacts and industry loss expectations associated with hurricane Maria appears to have caused a further dip in the values of interval reinsurance and ILS funds managed by Stone Ridge Asset Management and Amundi Pioneer, suggesting both could have additional exposure to the storm.