Hurricane Milton is initially estimated to result in insurance and reinsurance industry losses below $50 billion, according to Euler ILS Partners, at which level the notional impact to insurance-linked securities (ILS) portfolios is not expected to be substantial.In an event update distributed yesterday by the ILS investment manager and seen by Artemis, Euler ILS Partners, which is , said its initial estimate is for hurricane Milton’s losses to fall within a range from $30 billion to as much as $50 billion., Euler ILS Partners pre-landfall event update on Milton had suggested a 33% chance that industry losses from hurricane Milton could have risen above $50 billion, but they also said at that time “if Milton hits as a Category 3, we could see insured losses in the range of USD 30 billion to 50 billion.” The company expects to refine its loss estimate as more information and data becomes available.But, as of yesterday, Euler ILS Partners said that, “Based on this initial estimate, we do not expect a substantial notional impact on our portfolios and the ILS market in general.” Importantly, the company believes that Milton is a manageable event for the insurance, reinsurance and ILS market, although the ramifications for Florida’s insurance market are likely to be significant, especially with Milton having come so close to Helene.

Euler ILS Partners’ initial estimate aligns with what we’ve been hearing from other market sources.As we explained , our sources have been focusing on the same range, of $30 billion to as much as $50 billion, which suggests the insurance-linked securities (ILS) market has a relatively aligned view on the potential losses to be faced from hurricane Milton.It’s also worth noting that, .

– .– Milton loss below $50bn may not be sufficient to move pricing: Jefferies.– .

– Most mutual cat bond & ILS funds slid a little further on Milton’s final approach.– .– Hurricane Milton losses likely below a 5% cat bond market impact: Icosa Investments.

– .– Hurricane Milton Cat 3 landfall in Sarasota.Worst case Tampa loss scenarios avoided.

– .– Some mutual cat bond and ILS fund NAVs fall further on hurricane Milton threat.– .

– Hurricane Milton cat bond loss potential still in wide range: Icosa Investments.– .– 33% chance hurricane Milton loss above $50bn.

Would drive hard market: Euler ILS Partners.– .– Safe to say hurricane Milton likely a $20bn+ insurance market event: Siffert, BMS.

– .– Mexico’s catastrophe bond presumed safe from hurricane Milton.– .

– Hurricane Milton could be a huge test for the entire (re)insurance market: Evercore ISI.– .– As hurricane Milton intensifies, Mexico’s catastrophe bond comes into focus.

– .– Cat bond & ILS managers explore options to free cash, as hurricane Milton approaches.– .

– Hurricane Milton is biggest potential ILS market threat since Ian in 2022: Steiger, Icosa.– ..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.