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.
Hurricane Harvey, set to make landfall in Texas on the night between Friday, August 25, and Saturday, August 26, has continuously increased its strength and is currently a category 2 hurricane on the Saffir-Simpson scale. It is currently expected to be a category 3 hurricane at the time of landfall. However, the expected impact on the liquid cat bond market is expected to be none or small, unless it develops in an unexpected way. Read more.
Hurricane Matthew will affect the performance the Entropics Fund’s coming weekly NAV with less than -1% and the performance of the Swiss Re Cat Bond index with approximately -1.7%. We expect this drawdown soon to recover, as the situation clears and coupon earnings continues. We could see some collateralized reinsurance deals being affected but since the Entropics Fund is not invested in these securities, the portfolio is not affected. Read more.
Hurricane Matthew is the most severe hurricane to strike Florida in more than a decade. On its way to Florida, it has passed over several countries in the Caribbean. While our management is focused on possible insurance claims, it is already a severe catastrophe, and we deeply sympathize with all those affected by it. Read more.
The first cat bond fund managed by a Swedish manager – SEF Entropics Cat Bond Fund – is now made available to policy holders and clients to Skandia holding deposit linked insurance or deposits. The fund invests in a globally diversified portfolio of insurance linked securities, so called cat bonds, mostly related to extreme natural events. Read more.
The MultiCat Mexico Class C bond, which was believed to have triggered fully after the initial reports on hurricane Patricia, making landfall in Mexico in October 2015, has officially triggered at 50%. This is the result of the claims calculation made by AIR Worldwide. AIR’s report is based on the final report on the hurricane by the National Hurricane Center (NHC), demonstrating that the air pressure was somewhat higher than initial measurements showed. Thus, $50 million are released for reconstruction after the hurricane, which was estimated to cause economic damages of $325 million. Read more.