Articles by Gautam Naik

Insurers’ Climate Losses Almost Match Premiums From Fossil Fuels

Top insurance companies suffered $10.6 billion of climate-attributed losses this year, just shy of the $11.3 billion of direct premiums they underwrote for commercial fossil-fuel clients in 2023, according to Insure Our Future. Of the 28 insurers reviewed, more than …

Catastrophe Bonds See Investor Influx After ‘Fantastic’ Run

After emerging from an unusually active hurricane season with market-beating returns, catastrophe bonds are rapidly adding investors. Despite the increase in extreme weather — 2024 marked the ninth straight season in which the Atlantic basin suffered above-average storm activity — …

Italy to Require Companies Buy Insurance for Climate Risks

Starting Jan. 1, every company in Italy must buy insurance to protect its assets from floods, landslides and other natural hazards that have become more common thanks to global warming. It’s the latest sign of Europe’s rising anxiety about climate …

Catastrophe-Bond Funds Suffered Virtually No Losses From Hurricane Milton

After two weeks of number-crunching, it now seems clear that investors in catastrophe bonds emerged from Hurricane Milton relatively unscathed. In fact, holders of the bonds may be looking at returns of as much as 12%, according to Zurich-based asset …

Catastrophe Bonds Dodge Worst-Case Scenario After Milton

After fearing the worst from Hurricane Milton, investors in catastrophe bonds appear to have sustained losses well below those predicted as recently as Wednesday. Estimates that had indicated the bonds would lose as much as 15% have now been replaced …

Catastrophe Bond Investors Brace for Major Losses as Milton Rages

Investors in catastrophe bonds are girding themselves for substantial losses as the combined destructive force of Hurricanes Helene and Milton looks set to trigger payment clauses on a scale not seen in years. Two weeks after Helene unleashed severe floods …

Climate Losses Batter Insurers While Reinsurers Step Back

As the planet warms and more natural disasters occur, insurers are facing an increasingly difficult time. In 2023, for the fourth year in a row, global insured catastrophe losses exceeded $100 billion. The trend continues this year: In the first …

Natural Disasters to Cause $151 Billion in Annual Insurer Losses

Urban expansion, property exposure and climate change could fuel a 40% increase in annual natural-catastrophe losses for the global insurance industry, according to a new report. The annual loss could rise to $151 billion from the average annual loss of …

Hedge Fund Fermat Says Returns Took a Hit Amid Catastrophe Bond Selloff

Fermat Capital Management, one of the world’s biggest investors in catastrophe bonds, says anxiety about this year’s hurricane season has already left a meaningful dent on returns. “Returns in May were low and even negative for a lot of funds,” …

The Huge Profits Investors Have Made on Catastrophe Bonds Are Raising Eyebrows

A strategy that’s delivered specialist investors huge returns is now facing scrutiny, amid concerns that its risk-reward dynamics might be skewed against some issuers. Catastrophe bonds, which are issued by insurers, reinsurers and governments seeking an extra layer of disaster …