Hurricane Florence made landfall in North Carolina on Friday, September 14. Wind damages are expected to be relatively small, but Florence will cause substantial losses, primarily from storm surges, torrential rain and flooding. Entropics does not expect any losses in the Entropics Cat Bond Fund. Read more.
The Atlantic Hurricane Florence is approaching the US East Coast and is set to make landfall in North Carolina or South Carolina within the next 48 hours. It is currently a category 4 hurricane with potentially catastrophic effects in the affected areas. Still, considerable uncertainty regarding the exact path and potential landfall location of the hurricane remains. Read more.
The current California wildfire season has generated global media interest. Besides the size of the fires themselves, further interest has been spurred by the extremely hot weather and resulting wildfires on the Northern Hemisphere during the summer. Currently the estimated insured losses will be covered by direct insurance companies and maybe some reinsurance companies. US wildfire risk is a remote risk in Entropics’ as well as most managers’ portfolios. Read more.
The well-known entrepreneur Lars Irstad, most famous for having founded Programator, purchases 9.9% of the asset manager Entropics Asset Management. Entropics is the first asset manager in Scandinavia specialized in cat bonds (bonds that provide catastrophe insurance). Read more.
Mathematical skill is a core competens for cat bond management. Hence, Entropics sponsors the mathematics club Tänkarna with facilities to stimulate children's mathematical interest. The math club recently carried out the competition "Borromeic Triangles" at four places around the country. The Stockholm part took place at Entropics. Read more.
In early March, the winter storm Riley struck the US Mid-Atlantic coast with strong winds and massive snowfall. While it was an unusually severe storm, with rapidly decreasing pressures and hurricane force gusts, it would normally not affect any cat bonds. Read more.
2017 is set to be the costliest year ever from wildfire damages. Adding to the extreme North Atlantic hurricane season, cat bonds can be affected, which is reflected in the fund’s NAV. By our present assessment, one bond in the portfolio is potentially facing a total loss of its principal and one would suffer a partial loss. Read more.
According to an October 30 update by RMS, the expected economic costs of the October wildfires in California, will be between $6 billion and $8 billion. Losses in this range could affect some positions in Entropics’ portfolio. With current pricing on the secondary market, the effect on the NAV would be less than 1%. Read more.
Hurricane Nate made landfall in the southeastern corner of Louisiana, in the Mississippi delta, and a second landfall near Biloxi, Mississippi, as a Category 1 hurricane. While any hurricane causes destruction in its path, damages from Nate appear moderate. Hence, it will not trigger any bonds in the fund. Read more.
Hurricane Maria, which recently caused devastation on Puerto Rico and several Caribbean islands, could also be a larger insurance event than initially expected. Hence, the event could have some impact to the cat bond market and the portfolio. Read more.
Hurricane Irma will be a major insurance event for the insurance and reinsurance industry. AIR Worldwide estimates combined insured losses for the hurricane for the United States will be between USD 20 billion and USD 40 billion. It will also affect the ILS sector. The impact on liquid cat bonds appears to be smaller. Read more.
Despite uncertainty regarding the exact path will hurricane Irma be a major insurance event and is likely to affect one or more cat bonds. In any case, a short-term effect is expected on cat bond funds, including Entropics Cat Bond Fund, as indicative pricing reflect uncertainty before landfall. Read more.
This morning, an earthquake of magnitude 8.1 (preliminarily) occurred just off the coast of Chiapas, Mexico. Initial reports indicate widespread destruction and several fatalities in the region. The extent of damages is not possible to assess until daybreak local time. Read more.
Irma is still a category 5 storm with maximum winds up to 80 m/s, threatening landfall in Florida according the latest report by the National Hurricane Center (NHC). Market reactions reflect expectations that this could affect some cat bonds. Still, there is much uncertainty concerning the exact path and strength of the hurricane. Read more.
The hurricane Irma is classified as a category 5 storm, with wind speeds up to 82 m/s. Irma is currently located in the north east Caribbean moving towards the west-northwest, at a speed of near 26 km/h. Within the next few days, it may impact several Caribbean islands with potentially catastrophic winds, storm surges and extensive rainfall. Read more.
As more data has arrived it is clearer that it is a severe catastrophe, mostly due to flooding. It is also clearer that the wind linked damages are limited and are not expected to cause losses in Entropics’ portfolio or to the cat bond market. Read more.
Before landfall, Hurricane Harvey was upgraded to a category 4 storm, making it the strongest hurricane to make landfall in the United States since Charley in 2004. It is also the first category 3 or greater storm since Wilma in 2005. During the night, Harvey was downgraded to a category 3 storm. The initial reports indicate that wind related losses are relatively limited and will be covered by direct insurance companies and, possibly, reinsurance. Read more.