hurricane Michael 2018

Insured losses caused by hurricane Michael’s impacts in Florida, based on claims paid data collected from insurers by the Florida state insurance regulator, have now risen to over $5 billion, which is a near 25% increase in around six weeks.

The Chairman and Chief Executive Officer (CEO) of collateralised reinsurer Oxbridge Re Ltd., Jay Madhu, explained that the firm’s recently launched sidecar vehicle diversifies its revenue streams and risk.

The industry loss warranty (ILW) market is waiting nervously for confirmed estimates of industry losses to emerge for a number of recent catastrophe events around the globe, with certain trigger points on-watch and further ILW losses possible in the coming weeks.

U.S. and global insurance giant American International Group (AIG) is likely to trigger its aggregate reinsurance tower due to catastrophe losses suffered in the fourth-quarter, as CEO Duperreault said the firm expects cats to cost it up to $800 million.

Reinsurance giant Munich Re has estimated that October’s hurricane Michael will result in $10 billion of losses to the insurance and reinsurance industry, a figure which is at the top-end of current estimates.

The estimate of insured losses from the impacts of hurricane Michael, based on claims paid data collected from insurers by the Florida state insurance regulator, has now risen to more than $4 billion, suggesting other industry loss estimates are likely to creep higher as well.

U.S. primary insurance giant Chubb has provided an estimate of its expected losses after reinsurance from the recent California wildfires and has also updated on its expected losses from hurricane Michael.

ILS and some reinsurance markets are beginning to show signs of fearing and in some cases expecting an Irma-like loss creep to occur with more recent hurricane Michael, leading some to even suggest that the industry insured loss could near $12 billion.

Unsurprisingly the share prices for the stock exchange listed CATCo Reinsurance Opportunities Fund, which is managed by Markel CATCo Investment Management Ltd. the retrocessional reinsurance investment specialist, have taken a hit today as investors digest today’s news of the impacts from recent catastrophes and ongoing loss creep from 2017.

Markel CATCo Investment Management Ltd., the retrocessional reinsurance investment specialist, has set reserves for expected impacts from hurricane Michael and typhoon Jebi for its stock exchange listed CATCo Reinsurance Opportunities Fund, while also warning of exposure to the California wildfires and continued loss creep from 2017 events as well.