Mexico struck by M7.0 quake. World Bank cat bond appears safe

A magnitude 7.0 earthquake has struck the Pacific coast of Mexico close to the tourist heavy area of Acapulco. At this stage, it appears the World Bank facilitated IBRD / FONDEN 2020 parametric catastrophe bond that provides the Mexican government with earthquake insurance protection is safe from loss, but it is hard to be certain on the limited information available to us.

The $485 million 2020 issued IBRD / FONDEN catastrophe bond provides risk capital to support Mexico’s FONDEN natural disaster fund, via reinsurance agreements with Mexican government-owned insurer Agroasemex S.A.

Two tranches of the cat bond notes issued for the FONDEN 2020 deal are exposed to earthquake risks, providing $235 million of earthquake insurance protection, on a parametric trigger basis.

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Weather disasters drive US $ 3.64 trillion in losses in 50 years: WMO data

The high costs of weather disasters around the globe is truly laid bare by the latest data from the World Meteorological Organization (WMO), which estimates that weather, climate and water related disasters drove some US$ 3.64 trillion in losses over the last 50 years.

The WMO’s latest Atlas of Mortality and Economic Losses from Weather, Climate and Water Extremes covers the period from 1970 to 2019, during which over 2 million lives were lost to these disasters.

That is from more than 11,000 reported disasters recorded, and during the period the research found that weather, climate and water hazards accounted for 50% of all disasters, 45% of all reported deaths and 74% of all reported economic losses, while more than 91% of these deaths occurred in developing countries.

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Hurricane Ida insured wind & storm surge losses seen at up to $25bn by AIR

AIR Worldwide has estimated that insurance and reinsurance industry losses to onshore property resulting from the wind and storm surge impacts of Hurricane Ida will be between $17 billion and $25 billion.

This estimate from AIR compares to CoreLogic’s industry loss range of $14 billion to $21 billion, and Karen Clark & Company’s re/insured loss estimate of close to $18 billion.

The catastrophe risk modeller’s insured loss estimate includes physical damage to property (residential, commercial, industrial and auto), both structures and their contents from winds, wind-borne debris, storm surge, and the impact of demand surge. But does not include hurricane precipitation-induced flood losses.

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NFIP cat bonds & reinsurance in focus as Ida’s remnants flood New York

The remnants of hurricane Ida have continued to drop torrential rain along its path north east and its slow pace and heavy downpours have now flooded parts of New York, all of which is heightening the risk posed to FEMA’s catastrophe bonds and reinsurance tower for the National Flood Insurance Program.

As we explained yesterday in our analysis of catastrophe bonds that have seen secondary market price declines in the wake of hurricane Ida’s landfall and impacts in Louisiana and the surrounding region, the FloodSmart Re catastrophe bonds are among those considered potentially exposed.

The US Federal Emergency Management Agency (FEMA) has been procuring reinsurance for its National Flood Insurance Program (NFIP) for a few years now, both from traditional reinsurers and the capital markets using catastrophe bonds.

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Catastrophe bonds marked down on hurricane Ida threat

A number of catastrophe bonds have been marked down in end of month secondary market pricing sheets, with some of the anticipated names suffering declines of between 25% and 35% in value.

After hurricane Ida’s devastating landfall with 150 mph winds in Louisiana on Sunday it was always anticipated that there would be a mark-to-market reaction in catastrophe bonds.

The majority of insurance-linked securities (ILS) fund managers seem relatively comfortable that cat bond losses will be largely mark-to-market from the hurricane, as long as the industry loss remains in the current estimated range of around $15 billion to as high as $25 billion.

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Agricultural Impacts of Flooding in Henan, China

The record rainfall that hit the province of Henan in China the week of July 19 caused extensive flooding that led to mass displacement and casualties. Some reports provided estimated impacts to the agricultural sector.  Here, we put those estimates into context for the agricultural insurance market in China.

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Germany & China see costliest disaster losses ever from July flooding: Aon

Both Germany and China have experienced their most costly insured natural disaster loss events in history in July, with both largely related to the impacts of devastating flooding, according to insurance and reinsurance broker Aon.

Germany is expected to face around US $20 billion in economic losses, while across Europe the July flood event is estimated to have cost more than $25 billion.

Of this, Germany is estimated to be facing $5.3 to $6.5 billion of insurance and reinsurance market losses from the flooding, while the rest of Europe is anticipated to be facing at least another US $1.2 billion of insured losses as well.

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Croatian earthquakes caused losses also in the neighboring countries

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The 6.4-magnitude earthquake has hit Croatia in 29 December, killing at least seven people and causing severe damage to the town of Petrinja south-east of the capital Zagreb, has also affected the neighboring Bosnia and Serbia, and was felt also in the southern Austria and Hungary.

According prefect Ivo Zinic’s statement one week in the new year, more than 22,000 buildings in Sisak-Moslavina County were damaged, while 20% of the 8,743 buildings inspected so far are completely destroyed. 116,000 people were directly affected by the earthquake and 66,000 by the damage. Damage has been reported to 3,000 family farms, 750 trades businesses and over 800 firms.

The Croatian government announced it will provide approx. EUR 21.1 million to protect jobs at companies in Sisak-Moslavina county, in a job retention scheme that will be available for the following two months. In addition, the ministry of economy will finance the rehabilitation of the offices of SMEs in the regions affected by the earthquake by providing HRK 10 million.

Croatia hit by M6.4 earthquake, strongest recorded to hit the country

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Yesterday, Croatia was struck by a magnitude 6.4 earthquake that has destroyed many buildings and was the largest quake to strike the country since the introduction of modern seismic instrumentation.

The M6.4 earthquake struck central Croatia at 11:19 GMT on Tuesday December 29th at a depth of 10km around 30 miles southeast of the capital city Zagreb.

The earthquake was widely felt in the region, with shaking experienced across the Balkans and property damage experienced in a wide number of towns and villages across central Croatia.

TURKEY: significant material losses expected after the October 30th earthquake in the Aegean area

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A 7.0-magnitude earthquake struck Friday in the Aegean Sea between the Turkish coast and the Greek island of Samos, killing at least 91 people and injuring over 1,000 amid collapsed buildings and flooding, according to the latest official data available. The quake also made a couple of victims, and injured 19 people, in addition to the material damages.

The quake was felt across the eastern Greek islands, but also much further, in Athens and Bulgaria. In Turkey, it shook the regions of Aegean and Marmara. Although citizens of Istanbul have also felt the seismic wave, no damages were reported in the city.