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Hurricane Isaias initial industry loss estimate set at $2bn to $4bn

Euler ILS Partners said insured losses remain uncertain in the early period, with damages partly driven by localized atmospheric turbulence.

Reported · Written up by our desk · Industry & Deals

Euler ILS Partners, an insurance-linked securities investment manager, has set an initial estimate for Hurricane Isaias insurance industry losses in the range of $2 billion to $4 billion, while warning that losses could rise as assessment efforts progress. The manager said losses may be added to aggregate structures as the event is evaluated further.

Euler ILS Partners also pointed to complexity in calculating losses, noting that much of the damage came from localized atmospheric turbulence. The firm said insured losses are currently estimated at USD 2 to 4 billion.

The storm made landfall near Destin, Florida in the early hours of Saturday morning local time, bringing Category 2 sustained winds of 105 mph or higher gusts. Euler ILS Partners noted that uncertainty is elevated after a major hurricane landfall and that industry loss estimates may be revised significantly in the initial post-event period.

Prior to landfall, market sources and reinsurance broker reports had indicated pre-landfall estimates in the low to mid-single digit billions of dollars, according to Euler ILS Partners.

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