Fitch Ratings Report

Hurricane Ian Fallout Will Test Catastrophe Bond Investor Appetite


Autor: Funds Society, Miami

  1. the ILS market will assume a fair share of losses from Ian, with Fitch estimating total insured losses of $35 billons.-$55 billons., second only to Hurricane Katrina at $65 billons ($90 billions. in 2021 dollars)
  2. Since 2017, with insured losses from Hurricanes Harvey, Irma and Maria, the number of cat bonds not returning full principal to investors totals 55 individual tranches with either a full or partial loss to investors, a dramatic increase compared to 75 tranches in totality since 1990
  3. Fitch rates two catastrophe bonds, Stratosphere Re Ltd., 2020-1 and Long Point Re IV Ltd., 2022-1 which are not at risk of principal loss given the former’s structural features and the latter’s predominantly northeast U.S. insured property value