Two strong earthquakes in California
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 Geological Survey (USGS) estimates that the earthquake has caused some losses that are relatively localized. With 70% and 67%, respectively, certainty, the material losses are estimated to be below $100 million for each event and the insured losses are substantially lower. As claims settlement commences, these figures will be updated. Based on current information, our assessment is that the events will not affect Entropics Cat Bond Fund or the cat bond market.
We continue to monitor the events and will revert with additional information, should the situation change.
Updated Jul 7, 2019