IBRD / FONDEN 2020

In a positive signal for the continuing use of private insurance and reinsurance capital to support the country’s natural disaster and catastrophe insurance needs, the Mexican government has renewed a $250 million layer of traditional catastrophe protection.

Hurricane Agatha is verging on reaching major Category 3 storm status as it nears the Mexican coastline with 110 mph sustained winds, but the central pressure remains far higher than would be needed to trigger the Government of Mexico’s World Bank issued catastrophe bond.

Yesterday, as tropical storm Pamela was intensifying in the Pacific and heading for a landfall in Mexico, the forecasts at the time were suggesting Pamela would quickly become a hurricane and then intensify to major category 3 or stronger before landfall, which suggested that Mexico’s World Bank facilitated IBRD / FONDEN 2020 parametric catastrophe bond […]

A magnitude 7.0 earthquake has struck the Pacific coast of Mexico close to the tourist heavy area of Acapulco. At this stage, it appears the World Bank facilitated IBRD / FONDEN 2020 parametric catastrophe bond that provides the Mexican government with earthquake insurance protection is safe from loss, but it is hard to be certain […]

Mexico’s still in-force $485 million IBRD / FONDEN 2020  catastrophe bond will continue to provide the country with important disaster insurance protection, as the beneficiary of the cover has been shifted away from the shuttered FONDEN disaster fund to the country’s Treasury.

Hurricane Delta has now intensified into the third major hurricane of the 2020 Atlantic storm season and with further strengthening in the forecast this storm could pose a test for the World Bank issued FONDEN 2020 catastrophe bond sponsored by the Mexican government.

Tropical storm Delta has quickly intensified to become Category 2 hurricane Delta as it moves through the Caribbean and the hurricane is now expected to reach major status, of Category 3 or higher, as it moves towards a landfall on the central U.S. Gulf Coast at the end of this week.

Hurricane Genevieve remains a strong category 3 hurricane as it barrels towards the Baja Peninsula of Mexico in the Pacific, with sustained winds of 115 mph and higher gusts, but with the central pressure of the storm now rising it suggests there is no threat to the World Bank issued parametric Mexico catastrophe bonds.

Southern Mexico was struck by a significant Magnitude 7.4 earthquake on Tuesday at around 15.30 UTC, but while the location of the earthquake appears to have fallen within a box relevant to the parametric trigger of the World Bank supported IBRD / FONDEN 2020 catastrophe bond, it does not look strong enough to have triggered […]

The government of Mexico has said that its newly issued $485 million World Bank facilitated catastrophe bond, the IBRD / FONDEN 2020 transaction, is an important part of the country’s social protection strategy and reflects its “enormous commitment” to protecting its citizens from natural disasters.