The SEF Entropics Cat Bond Fund to be terminated. Asset manager Entropics will focus solely on its institutional management offering
SEF Entropics Cat Bond Fund is managed as a compartement in a consumer fund compliant with the European UCITS regulation. The cat bond asset class is still relatively unknown among Swedish consumers and, as the fund volume has not reached a critical level, the board of SEF SICAV in Luxembourg has decided to terminate the… Read more.
California wildfires have received a lot of attention in 2019. Compared to previous years, the fires are limited, primarily due to successes in limiting the extension of each fire. Currently, no large urban centres are threatened, and we do dot expect any direct effect on cat bonds. The fund does not hold any bonds specifically… Read more.
Typhoon Hagibis, which made landfall in Japan last weekend, had devastating effects, primarily as a result of torrential rain and floodings. Just outside of downtown Tokyo, 600 mm of rain fell in 24 hours, and southwest of the city, 940 mm fell in the same period. In addition to the human suffering, the costs for… Read more.
Hurricane Dorian, currently at some 685 km south-southeast of Southeastern Bahamas, is currently moving in a northwestern direction by some 20 km/h. It is a category 1 hurricane, with wind speeds between 33 and 42 m/s but is expected to strengthen along its course towards Southeastern USA. The latest forecasts indicate a landfall in Southeastern… Read more.
Two earthquakes have taken place near Ridgecrest, Northeast of Los Angeles. The quakes, with magnitudes of 6.4 and 7.1 were the most powerful earthquakes with epicenter in Southern California since 1999. The Ridgecrest area has low population density and, even though the earthquakes were felt in Los Angeles, the material losses are small. The US… Read more.
Currently, large wildfires rage in California. Camp Fire in the northern part of the state is now the most devastating wildfire in California on record, with more than 6,700 destroyed structures, mostly in the city of Paradise, which is all but destroyed, and more than 23 deaths. In the southern parts of the state, the Woolsey Fire threaten the city of Malibu, and at least 150,000 homes have been evacuated. These events can affect cat bonds. Read more.
During the night between Tuesday and Wednesday CDT, hurricane Willa made landfall on the west coast of Mexico in the state of Sinaloa as a category 3 hurricane. As the hurricane weakened and the central pressure increased prior to landfall, no cat bond is affected by the event. Read more.
Hurricane Willa is approaching the west coast of Mexico as a category 5 hurricane. Though forecasts indicate that it will weaken somewhat before making landfall in the northern parths of Nayarit state or the southern part of Sinaloa state, the probability is high that it will make landfall as a major hurricane (category 3 or 4). The hurricane threatens to trigger one cat bond, also in Entropics Cat Bond Fund. Forecasts are still too uncertain to decide whether that will be the case. Read more.
Hurricane Michael has intensified more than previously forecast and has during the evening made landfall at Mexico Beach in Northwestern Florida as a Category four hurricane. The increased intensity means that insured losses will increase compared to previous forecasts and could potentially entail insurance payouts from cat bonds and Entropics Cat Bond Fund. Small deviations of the continued path of the hurricane could, however, have large impact on the losses. Read more.
Hurricane Michael is expected to make landfall near Panama City in Northwestern Florida on Wednesday evening (CET). Before landfall, the hurricane is expected to intensify and to make landfall as a Category 3 hurricane, with large potential losses from winds, torrential rain and storm surges. Based on currently available modelling data, no portfolio cat bonds are expected to trigger. Read more.
In the coming weekend, Typhoon Trami is expected to make landfall in mainland Japan. The typhoon, currently a Category 2 storm, is expected to regain strength and could make landfall as a strong Category 2 or a Category 3 storm bringing storm surges and torrential rain in addition to hard winds. Currently, the cat bond market prices do not indicate a reaction to the event. Read more.
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.