hurricane Milton 2024

Universal Insurance Holdings, the Florida headquartered insurer, reported that hurricane Helene drove its net loss ratio up in the third-quarter of the year, but its CEO highlighted that its reinsurance retention now drops for a subsequent event, meaning a smaller financial impact expected in Q4, including from hurricane Milton.

Mark-to-market pricing implied losses for the catastrophe bond market from hurricanes Helene and Milton are estimated at ~$380 million, at which level actual losses to the cat bond market in 2024 are running below the expected level, suggesting pricing will remain in neutral territory or could even soften slightly for the January renewals, according to […]

Losses from hurricanes Helene and Milton are expected to support the stabilization of property catastrophe reinsurance pricing going into the key January 2025 renewals, Moody’s Ratings expects.

American Coastal Insurance Company, the main entity of what was the United Insurance Holdings group, has pre-announced an expectation of up to $200 million in gross losses from hurricane Milton, at which level it will make reinsurance recoveries but its recently sponsored catastrophe bond would not be triggered.

Recent Atlantic hurricane activity is likely to only drive “limited” losses to top-layer insurance-linked securities (ILS) strategies, such as catastrophe bonds, but will contribute to keeping spreads in the ILS asset class “historically high”, Schroders Capital’s Nils Rode has said.

The CEO of Heritage Insurance Holdings, Inc., the Florida headquartered property and casualty insurer, has warned that its gross losses from recent hurricane Milton could reach the third layer of its reinsurance tower, suggesting a reasonable amount of risk capital will support its claims from the storm.

Global reinsurance giant Munich Re has pre-announced an expectation of around €500 million in losses from September’s hurricane Helene, but while the reinsurer expects significant additional claims expenditure from hurricane Milton in Q4, the company is still forecasting it will beat its full-year profit target.

With another week of insights gathered on the potential for any losses from hurricane Milton, thanks to industry loss estimates and catastrophe bond pricing, the net asset values (NAVs) of US mutual investment funds that allocate to catastrophe bonds and other insurance-linked securities (ILS) were mostly marked up again at the end of last week.

At Friday’s pricing, the catastrophe bond market index calculated by Swiss Re Capital Markets bounced back by more than one percent, leaving the benchmark for the entire cat bond market now only -0.30% down since hurricane Milton, while the US wind specific version of the cat bond index also recovered and is now -1.31% since […]

Highlighting the still wide-range of uncertainty in insurance market loss estimates after hurricane Milton, catastrophe bond investment manager Icosa Investments AG has noted that the cat bond market seems not to have discounted prices as widely to account for uncertainty this time.