mexico

Reinsurance broker Gallagher Re has said that hurricane Otis will be one of the costliest natural catastrophe events in Mexico’s history, with a multi-billion-dollar insurance market loss anticipated because of the devastating impacts of the storm.

Specialist insurance and reinsurance-linked investment manager Twelve Capital has highlighted some uncertainty with respect to the final central pressure figure that will get reported for hurricane Otis, but still believes it is probable the Mexican government’s exposed catastrophe bond tranche will face a 50% loss of principal.

There is a “high probability” that holders of the $125 million Pacific hurricane tranche of the Mexican government’s IBRD / FONDEN 2020  catastrophe bond face a 50% loss of notional, which would equate to a $62.5 million loss for the cat bond market, investment manger Plenum has explained.

The Government of Mexico’s catastrophe bond is facing its most severe threat of the current Pacific tropical cyclone season, as hurricane Otis has rapidly intensified to a category 5 storm and its central pressure has deepened sufficiently to trigger the $125 million IBRD / FONDEN 2020 tranche of notes that are exposed.

Hurricane Lidia rapidly intensified on-approach to Mexico’s Pacific coast late yesterday, with the storm’s sustained wind speeds doubling and its central pressure dropping rapidly as it neared landfall, which could serve to drive some price pressure, or uncertainty at least, to the Class D notes of the Mexican governments IBRD / FONDEN 2020 catastrophe bond […]

Hurricane Lidia is bearing down on the western Pacific coast of Mexico with sustained winds of around 125 mph. Some additional strengthening is forecast, and the risk to the Mexican governments IBRD / FONDEN 2020 catastrophe bond has risen thanks to ongoing intensification of Lidia up to landfall.

Hurricane Roslyn made landfall on Mexico’s Pacific coastline as a category 3 hurricane with maximum sustained winds of around 120mph on October 23rd, but the minimum central pressure of the storm was not sufficiently low to trigger Mexico’s catastrophe bond arrangement.

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 […]