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Hurricane Polo makes landfall in Baja California Sur, no IBRD trigger

Artemis said the IBRD CAR Mexico 2024 (Pacific) catastrophe bond was not threatened because Polo never entered a parametric trigger zone, even as some forecasts briefly suggested a possible coastline impact as a Category 5.

Reported · Written up by our desk · Reinsurance

Hurricane Polo made landfall on the west coast of Baja California Sur, Mexico, with sustained winds of 110 mph and a minimum central pressure of 965 mb, according to Artemis.

Artemis said Polo did not cross any parametric trigger zone for the Mexican governments $175 million IBRD CAR Mexico 2024 (Pacific) catastrophe bond, so there was no threat of triggering the deal.

The outlet added that while some forecast models earlier raised the possibility that Polo could turn toward the Mexican coastline at Category 5 intensity, the storm stayed offshore and took the main model route toward the Baja peninsula before making landfall.

Artemis also noted that bid/ask spreads for the Mexico IBRD Pacific coast named storm cat bond widened during the period of uncertainty about the storm track and then fluctuated.

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