Claims and losses

The federal flood program expects ultimate losses to reach between $3.5bn and $5.3bn.

The ILS analysts pegged expected returns for the year at 7.40%.

The firm missed its earning per share target for the quarter.

Private flood insurance accounted for about 40% of total flood insurance premium in California, higher than Florida’s 15%.

Their view that “investors have never had it so good” speaks of a market in an upbeat mood as of January.

The government will look to mitigate against future disasters rather than subsidise insurance.

Canadian windstorms and freezing conditions in the UK led to the losses.

The losses include damage to homes, businesses, infrastructure, facilities, roadways and vehicles, as well as BI losses.

For the ILS market, perhaps more than any other, the outcome of this year’s high inflation is still to be determined. Unlike other industries that are suffering increased immediate costs, this sector’s performance – as always – is ultimately driven by events no one can foresee.

Rate increases achieved at 1 January will help carriers keep pace with inflation, the agency said.

Atmospheric rivers are expected to bring further severe weather into next week.

Lane Financial said that the cat bond market is suggesting that the early markdowns were an overreaction.