Here's our latest Friday wrap-up of key news from the week.
Hurricane Milton dominated the news cycle this week, pre-landfall estimates from brokers pointed to a $15bn to $40bn range for industry losses.
Icosa Investments said the cat bond market impact is likely to be below 5%.
Euler ILS Partners said that the industry loss could be from $30bn to $50bn, but that ILS market losses are not expected to be substantial.
Having fallen for a few days, mutual cat bond and ILS funds saw their NAVs marked back up a little yesterday as the impacts of Milton became clearer.
Tanja Wrosch of Twelve Capital said that cat bond funds can still end the year positively, even after including any Milton impacts.
Analysts differed in opinion, as KBW said Milton could result in property cat rates rising a little at the January renewals, but Jefferies analysts said if it is below $50bn the Milton loss may not be sufficient to move pricing.
Jeffrey Davis of Elementum Advisors said that the cat bond market index is expected to fall in the wake of Milton, but at least some of this is likely to be recovered.
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In other news this week, ILS Bermuda held its Convergence 2024 event and Jo Stanton of Tangency Capital said that Milton highlights the importance of collaborations with science to drive the understanding of risk and innovation.
Also at Convergence, a panel discussed that insurance-linked-securities (ILS) have been a major change that has helped drive a deconstruction of the traditional insurance and reinsurance balance-sheet.
Verisk estimated that hurricane Helene will cause a $6bn to $11bn private market loss.
Amwins and Floodbase launched a collaboration to provide parametric flood insurance to municipalities in California.
Back to hurricane Milton, we also reported first that Mexico's parametric catastrophe bond was unlikely to be affected by the storm as it passed the Yucatan at Cat 5.
While, just prior to landfall, we explained that the insurance, reinsurance, catastrophe bond and insurance-linked securities (ILS) markets would be ready to respond to its damages.
Finally, if you haven't seen them, Artemis has a wealth of data and analytics on the catastrophe bond and broader ILS market. View our charts and Deal Directory.
Catch up on our video interviews with ILS market leaders here.
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We'll be back next week with more regular coverage.
We hope you have a safe & relaxing weekend.
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