Reinsurance linked investment

The insurance industry loss from hurricane Milton in the US from wind, storm surge, and inland flooding has been estimated at close to $36 billion by Karen Clark & Company (KCC), although this excludes insured damage to boats, offshore properties, and losses to the National Flood Insurance Program (NFIP).

Analysis from Milliman concludes that hurricane Milton will end up a relatively minor catastrophe loss event for the insurance-linked securities (ILS) market, based on an estimate of insurance market losses in the $20 billion to $40 billion range.

The target allocation range has been increased for a Munich Re sidecar investment that features in the insurance-linked securities (ILS) portfolio managed by PGGM, the Dutch pension fund investment manager, on behalf of its end-client the Dutch pension PFZW.

Moody’s RMS Event Response has estimated that the total U.S. private market insured losses from the recent Hurricanes Helene and Milton will likely range between $35 billion and $55 billion.

According to analysis by Morningstar DBRS, the total private and public insurance market loss from hurricane Milton is expected to fall in the upper-half of a $30 billion to $60 billion range, with flood insurance losses to the NFIP expected to be up to $10 billion of the total.

Speaking with Artemis in a recent video interview, William Ho, the CEO of MS Amlin Asia Pacific, discussed the innovative Phoenix sidecar series of deals and explained that these challenged the norm of what is typically seen in insurance-linked securities (ILS) and the product has delivered for its investors.

According to analysis from ICEYE, the provider of satellite data and services to inform decision-making and analysis, more buildings may have been impacted by flooding from hurricane Milton in Florida than was seen with hurricane Helene.

In the wake of hurricane Milton’s landfall and damaging impacts on the state of Florida last week the catastrophe bond market fell by 1.34% and a range of outstanding cat bonds had their secondary marks priced down, some more considerably than others.

Hurricane Milton has had a less severe impact on catastrophe bonds than had been feared as the storm approached Florida last week, but this could still be sufficient to drive risk premiums higher according to specialist investment manager Plenum Investments.

Here are the ten most popular news articles, week ending October 13th 2024, covering catastrophe bonds, ILS, reinsurance capital and related risk transfer topics. To ensure you never miss a thing subscribe to the weekly Artemis email newsletter updates or get our email alerts for every article we publish.