Hurricane Milton

In the evening hours of October 9, Hurricane Milton made landfall on the eastern coast of Florida, south of Tampa Bay. While the storm was certainly a remarkable cyclone in many aspects, labels such as ‘the storm of the century’ that were used by the media during the reporting on this event seemed exaggerated all along.

Local measurements of wind speed during the passing of the storm over Florida hardly correlated with Milton’s official Category 3 status at landfall. Nevertheless, early loss estimates by modelling agencies forecasted a marked loss for the reinsurance industry. For the portfolios of the Solidum ILS and Cat Bond Funds, a drag on the excellent performance in 2024 so far cannot be ruled out, but the storm should remain an ‘earnings event’, if at all.