CHANDAN KHANNA/AFP via Getty ImagesHurricane Milton's impact on Florida won't cause major losses for catastrophe bond investors, portfolio managers say.Catastrophe bonds help insurers transfer weather event risks to investors.Insurance companies still face significant losses, but cat bond investors aren't eyeing the worst-case scenario.The impact of Hurricane Milton on Florida is unlikely to trigger massive losses for catastrophe bond investors.The fixed-income securities allow insurers and reinsurers to transfer risks associated with major weather events to investors.Investors who buy cat bonds can see big returns if it's a relatively quiet year for hurricanes and other natural disasters and damage from any event is mild.Earlier this week, some cat bond portfolio managers were expecting big potential losses due to the back-to-back storm systems of hurricanes Helene and Milton.But after Milton weakened slightly and tracked just south of Tampa when it hit Florida's west coast, it didn't deliver a massive storm surge to the area predicted in the worst-case scenarios.
Catastrophe Bond Investors Are Unlikely To Be Dealt Massive Losses As Florida Dodges Milton's Worst-case Scenario
mfox@businessinsider.com (Matthew Fox), Business Insider
Thu, 10/10/2024 - 8:57am
Topics: bondholders cautiously, we chandan khanna/afp getty imageshurricane florida chin liu amundi us tanja wrosch twelve capital icosa investments ceo florian steiger progressive allstate chubb limited travelers swiss re global cat bond august hurricane milton business insider massive losses worst-case scenario catastrophe bond investors damage storm insurance portfolio event bonds companies impact market major risk insurers increase significant managers weather risks transfer expected big higher premiums helene securities insured returns told thursday
BING NEWS:
- Catastrophe bond investors are unlikely to be dealt massive losses as Florida dodges Milton's worst-case scenario
"Our estimate is that a large portion of the insured losses will be retained by the insurance industry," Chin Liu told Business Insider.
10/10/2024 - 5:54 am | View Link - Hurricane Milton's Impact on Florida Could Trigger $100 Billion in Insurance Losses
Hurricane Milton, now bearing down on Florida's Gulf Coast, is poised to become one of the most costly storms in recent history, with analysts forecasting insured losses that could reach as high as ...
10/9/2024 - 5:52 am | View Link - More
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