Reinsurance sidecars news

According to specialist insurance-linked securities (ILS) investment manager Euler ILS Partners, there is a roughly 33% chance that industry losses from hurricane Milton rise above $50 billion and if that were to happen the manager believes it could drive a very hard market across reinsurance.

This morning hurricane Milton has strengthened back to a Category 5 major hurricane overnight, with sustained wind speeds of 160 mph and gusts estimated at over 200 mph. Last night, Milton wobbled slightly south of the NHC forecast cone center line, but remains locked onto Tampa Bay, with a track consensus just slightly to the […]

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.

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.

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.

Hurricane Milton has strengthened into a 100 mph storm and is expected to become a major hurricane later today. The NHC has now begun including storm surge height indications in its updates on Milton and from-the-off they call for between 8 and 12 feet of storm surge to impact Tampa Bay.