mexico

Late yesterday we wrote that a large earthquake which struck Mexico had the potential to be a threat to the parametric MultiCat Mexico 2009 Ltd. catastrophe bond. The location where the earthquake struck was very close to one of the defined zones which a qualifying event must occur within, had the correct magnitude at Mw7.4 […]

A large earthquake has struck Mexico near the Pacific coast not far from Acapulco and Oaxaca within the last hour or two. The USGS gave the earthquake an initial magnitude of Mw7.6, which they’ve since reduced to Mw7.4, and the earthquake struck at a depth of 20km. So far there are no reports of significant […]

The Mexican government has decided to triple their investment in disaster insurance coverage for 2012, over the amount the country spent in 2011 according to reports. 3.15 billion pesos, which is nearly $250m has been set aside for investment in disaster insurance to protect the country from climate, weather and catastrophe events.

It isn’t often that a single catastrophe bond transaction is threatened by two events in as many weeks, but it’s only just over two weeks since the MultiCat Mexico 2009 Ltd. cat bond was threatened by Jova on the Mexican Pacific coast and now the same cat bond is threatened by another hurricane bearing down […]

Hurricane Jova is approaching the Pacific coastline of Mexico carrying maximum sustained winds of 115mph. Jova, a major hurricane, has weakened slightly but is still expected to cause significant damage as the storm makes landfall near Manzanillo, both from the strong and damaging winds and torrential rainfall Jova will bring to higher ground. Interestingly, hurricane […]

The 2011 Atlantic tropical storm and hurricane season is now underway with the first tropical storm of the season forming in the southwestern Gulf of Mexico. Tropical storm Arlene formed around 450km east-southeast of Tampico, Mexico after an area of showers and thunderstorms developed sufficiently to be classified as a tropical storm straight away (skipping […]

The Mexican government have announced that they have completed the purchase of over $400m (4.8 billion pesos) of natural disaster insurance to help protect the country from events such as hurricanes and earthquakes. The insurance policy will provide cover for public infrastructure and low-income housing units according the government.

So far, the 2010 Atlantic hurricane season has been kind to insurers and reinsurers. On each occasion that a large loss has been expected the winds have died or the storm track has changed enough to prevent that large loss happening. Despite this being one of the most active seasons the losses are not mounting […]

Hurricane Karl is destined to make a second landfall on the Mexican coastline late on Friday. Currently a strong Category 2 hurricane with sustained winds of 105mph, Karl is expected to strengthen before making landfall and could hit the coast as a Category 3 storm. Update: the forecast has changed in the last hour and […]

You would be forgiven for thinking that FONDEN, the Fund for Natural Disasters of Mexico, would be perfectly able to cope with losses from natural disasters as it has the MultiCat Mexico 2009 Ltd. catastrophe bond to fall back on. Unfortunately, the types of disasters which cause regular problems in Mexico aren’t covered by that […]