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.
Hurricane Patricia is highly likely to trigger a cat bond, MultiCat C, part of Entropics' portfolio. This affects the NAV of the fund and releases resources for reconstruction in Mexico. Read more.
Scandinavia’s first asset manager specialized in Insurance Linked Securities (ILS), Swedish based Entropics Asset Management AB, has now local representation in Finland. Mika Mäkinen, a well-known actuary and executive in the Finnish insurance industry, is appointed as representative of Entropics in Finland. Read more.
Entropics Asset Management has been accepted as a signatory of the UN Principles for Responsible Investments, joining 1 377 other financial industry signatories worldwide. By doing so, Entropics commits to following six principles in its investment decision making and to contribute to an efficient sustainable global financial system. Read more.
As of today, the SEF Entropics Cat Bond Fund is available to retail consumers through the Swedish online bank Nordnet. Thus, Nordnet is the first distributor to offer the Fund’s retail class to individual investors and pension savers. SEF Entropics Cat Bond Fund is the first cat bond fund managed by a Swedish manager. Read more.
SEF Entropics Cat Bond Fund is open to subscriptions and starts investment operations today, February 16. The Fund is the first fund specialised in cat bond investments managed by a Scandinavian asset manager and is the ninth cat bond fund globally to comply with UCITS regulations. Read more.