typhoon Faxai 2019

SCOR, the global reinsurance player headquartered in France, has been benefiting from its retrocesssion program for recent catastrophes, making recoveries for both hurricane Dorian and typhoon Faxai, according to the CEO of SCOR Global P&C.

Industry losses from the flood driven damage of typhoon Hagibis could reach into the double-digit billion dollar range, according to ILS manager Twelve Capital, who also highlighted that in the ILS market it is collateralised retrocession that appears most at risk of performance impacts.

Typhoon Hagibis loss impact on insurance, reinsurance and insurance-linked securities (ILS) markets is likely to drive further rate improvements at upcoming renewals, but the market should watch out for potential loss creep, analysts at KBW warn.

Typhoon Hagibis is estimated as likely to cause an insurance and reinsurance market loss somewhere in a range from $8 billion to as much as $16 billion, by AIR Worldwide.

Insurance giant American International Group (AIG) is likely to severely drain its reinsurance protection for Japanese loss events after it accounts for its losses from typhoons Faxai and Hagibis, according to analysts,

Retrocessional reinsurance focused investment manager Markel CATCo Investment Management has now established specific loss reserves for recent catastrophes hurricane Dorian and typhoon Faxai.

An early estimate suggests that Japanese typhoon Hagibis could eventually drive in excess of $10 billion of insurance and reinsurance industry losses, which when added to the other recent typhoon Faxai could see the 2019 typhoon season leaving a larger dent in the industry than 2018’s Jebi and Trami combined.

RenaissanceRe (RenRe), the Bermudian insurance and reinsurance underwriter and joint-venture capital manager, estimates that its net losses from third-quarter 2019 catastrophes will reach $155 million, after taking into account risk shared with third-party investors and loss of any associated fee income.

Global insurance and reinsurance firm Everest Re has pre-announced an estimate of its third-quarter 2019 catastrophe losses, saying it expects $280 million net impact, which analysts note is aligned on market-share estimates, but based on the highest estimates of industry loss.

The assessment and quantification of insurance and reinsurance market losses after typhoon Hagibis is to be complex and likely prolonged as a result, but there is a chance of some performance impact to private collateralised reinsurance deals, according to ILS investment manager Twelve Capital.