Reinsurance linked investment

In his latest update yesterday evening, Andrew Siffert, Senior Meteorologist at broker BMS Group, explained that he feels it is safe to say that hurricane Milton is likely to be at least a $20 billion insurance market loss event, while even a best possible scenario of a wind shear impacted Milton going into Tampa Bay […]

Major hurricane Milton continues to bear down on Florida and in recent updates from the National Hurricane Centre warning areas for the Florida Peninsula have been expanded, with an expectation the storm could sustain hurricane wind speeds all the way as it crosses the state from west to east.

Welcoming attendees to ILS Bermuda’s 2024 Convergence event today, Jo Stanton, Chair of ILS Bermuda and Head of Finance at insurance-linked securities (ILS) investment manager Tangency Capital explained that with hurricane Milton heading for Florida it highlights the importance of collaborations with science to drive the understanding of risk and innovation.

After hurricane Milton skirted the northern Yucatan peninsula of Mexico without making a landfall it is now presumed that the $125 million Class C notes of the IBRD CAR Mexico 2024 catastrophe bond are safe and will not suffer a loss.

Yesterday saw a number of the 1940’s Act registered US mutual investment funds that allocate to catastrophe bonds and other insurance-linked securities (ILS) declining, presumably as asset managers cut their net asset values (NAV’s) on the potential for losses from hurricane Milton.

If hurricane Milton remains locked onto the Tampa Bay area for landfall, then it could be a huge test for the entire insurance and reinsurance market, according to analysts at Evercore ISI.

Overnight, hurricane Milton’s intensity peaked at sustained winds of 180 mph with a central pressure of 897 mb before an eyewall replacement cycle began. While the storm has weakened somewhat to a Category 4 with 155 mph winds now, the threat to Florida should not be understated and storm surge height indications for Tampa Bay […]

Insurance industry losses from major hurricane Milton’s eventual impacts in Florida could amount to tens of billions of dollars, but there is high uncertainty still as the eventual landfall location and intensity will greatly influence the eventual cost for the industry, according to Andrew Siffert, Senior Meteorologist at BMS Group.

Hurricane Milton is now a Category 4 storm with sustained winds of 155 mph at the latest NHC update. With the central pressure now estimated at 933 mb and a track that will see Milton getting very close to the northern Yucatan peninsula, it has brought the Class C notes of the IBRD CAR Mexico […]

If now major hurricane Milton results in “material” losses for reinsurance capital providers, analysts at KBW have said that this could change the expected trajectory of property catastrophe reinsurance pricing at renewals in 2025.