hurricane Milton 2024

Oxbridge Re Ltd., the Cayman Islands based reinsurance company, has said that two tranches of tokenized reinsurance securities that fund its collateralized reinsurance sidecar vehicle for 2025 remain on-track to deliver attractive returns. But the prior year vintage of the tokens appears to have been impacted by losses due to hurricane Milton.

Losses to the Florida Hurricane Catastrophe Fund (FHCF) from hurricanes Helene and Milton in 2024 are set to come in lower than estimates, as its administrators now put the 2024 hurricane season loss at just $3.01 billion for the Cat Fund that provides a reinsurance-like reimbursement for a portion of a residential property insurers’ loss.

According to global reinsurance giant Munich Re, both economic and insurance market losses from tropical cyclone activity around the globe in 2024 are “significantly higher” than averages, with the insured total for the year estimated at $51 billion.

The Lloyd’s insurance and reinsurance market is expecting losses from hurricanes Helene and Milton to fall within a $1.8 billion to $3.4 billion range, but speaking today Patrick Tiernan, Chief of Markets, said he expects it will trend towards the lower end.

US insurer Allstate has confirmed its pre-tax loss from hurricane Milton at $102 million, at which level it seems possible the Sanders Re II Ltd. (Series 2024-2) catastrophe bond may face a loss, while the companies year-to-date pre-tax catastrophe losses have reached $4.84 billion after October.

France-headquartered global reinsurance company SCOR published its third-quarter results today, revealing that the company purchased new retrocession for its property and casualty business in Q3 2024, while also forecasting a hurricane Milton impact in the mid to high double-digit million euro range.

Global reinsurance company Swiss Re reported its third-quarter and nine month 2024 results this morning, revealing that Q3 large natural catastrophe losses of $743 million dominated the year-to-dates $813 million, while hurricane Milton is expected to fall below $300 million for the company in Q4.

While lawsuits against insurers in Florida are said to have declined again across the first three quarters of 2024, the claims environment following hurricane Milton is expected to provide a “true test” for the legislative reforms that were enacted to reduce the litigious property insurance environment in the state.

The latest data reported by the U.S. Federal Emergency Management Agency (FEMA) states that across hurricanes Debby, Helene and the most recent Milton, more than 72,000 National Flood Insurance Program (NFIP) claims have been filed so far.

Compared to storms of similar strength and intensity, claims activity to-date for recent hurricane Milton is seen as “relatively light”, according to the executive leadership of international carrier AIG.