tropical storm Ian 2022

We asked our insurance-linked securities (ILS) focused readers for their thoughts as to how large the Hurricane Ian mark-to-market implied loss to catastrophe bonds could be, when pricing sheets were marked on Friday.

Private insurance industry losses from major hurricane Ian are expected to rise close to $63 billion, according to catastrophe modeller Karen Clark & Company.

Plenum Investments has published an update on the potential for losses to catastrophe bonds after major hurricane Ian’s impacts in Florida, saying that, at an industry loss level estimated to be around $50 billion, its cat bond funds could suffer a loss of roughly one annual target return in USD.

It feels a little negative to focus on just two ILS fund strategies in this way, but as the Stone Ridge Asset Management mutual insurance-linked securities (ILS) and catastrophe bond funds are the only ones that are priced on a daily basis, they are providing valuable insights for the rest of the ILS market in […]

Hurricane Ian is approaching its second landfall on the South Carolina coast today, with sustained winds of 85 mph and gusts estimated at just over 100 mph, while a life threatening storm surge is forecast for parts of the seaboard.

Another data point for those looking at the implications of major hurricane Ian’s path through Florida, rating agency Fitch says the insurance and reinsurance market loss is likely up to $40 billion.

Coming on the heels of five heavy catastrophe loss years, major hurricane Ian’s impacts in Florida and the resulting insurance, reinsurance and ILS market loss, could trigger a wholesale reevaluation of the provision of catastrophe insurance protection, according to Michael Millette.

Hurricane Ian’s impact is likely to cause losses to some Florida focused indemnity catastrophe bonds, as well as to some of the NFIP’s FloodSmart Re cat bond series, according to investment manager Twelve Capital.

Major hurricane Ian is estimated to have caused an insurance and reinsurance industry loss of between $28 billion and $47 billion just from wind and storm surge damage in Florida, according to CoreLogic.

Another indication of the impacts of hurricane Ian for the insurance-linked securities (ILS) market is in how the publicly available net asset values of mutual catastrophe bond, ILS and reinsurance linked investment funds have been moving.