typhoon Faxai 2019

Spanish insurance and reinsurance group Mapfre said it believes typhoons Faxai and Hagibis will drive more than US $20 billion of industry losses to the sector, while it expects to take a hit of around $156 million, including some impacts from recent rioting in Chile.

There are fears in the market that typhoon Hagibis is going to end up repeating what was seen with last year’s typhoon Jebi, with loss creep emerging after the April reinsurance renewal again, potentially to the detriment of those hoping for significant rate increases.

Bermudian specialist insurance and reinsurance firm AXIS Capital Holdings Limited has estimated its losses from recent Japanese typhoon Hagibis at somewhere between $90 million and $110 million, net of accounting for recoveries from reinsurance and retrocession.

Retrocessional reinsurance focused investment manager Markel CATCo Investment Management expects that the combined impacts of recent catastrophe events typhoon Hagibis, typhoon Faxai and hurricane Dorian will result in a roughly 25% impact to capital deployed in the 2019 portfolio of its listed fund.

The General Insurance Association of Japan (GIAJ) has reported that already domestic insurers in the country have paid out just under US $2.5 billion for claims from typhoon Faxai, while for more recent typhoon Hagibis the claims are still mounting up.

MS&AD Holdings, the Japanese parent to domestic insurance carriers Mitsui Sumitomo and Aioi Nissay Dowa Insurance, as well as its international operation MS Amlin, has revealed today that it expects its ultimate loss from typhoons Hagibis and Faxai will be approximately US $3.36 billion, before reinsurance recoveries.

Analysts at Keefe, Bruyette & Woods (KBW) have agreed that insurance giant American International Group’s (AIG) per-occurrence reinsurance tower is at-risk of losses following typhoon’s Faxai and Hagibis, while today the insurer’s executives said that Validus’ retrocession could also be exposed.

Catastrophe risk modelling specialist RMS has now published an estimate for the insurance and reinsurance market impact of recent Japanese typhoon Hagibis, estimating the industry losses at between $7 billion and $11 billion.

The CEO of reinsurance firm RenaissanceRe said that his company believes typhoon Faxai could drive as much as a $10 billion industry loss, while the more recent typhoon Hagibis could a roughly 50% larger bigger at approximately $15 billion.

Company specific loss estimates from leading insurance and reinsurance firms for recent typhoon Hagibis appear to confirm that the industry impact of that storm are going to eclipse that of the other recent Japan typhoon Faxai.