Investors in catastrophe bonds have reportedly incurred minimal losses following Hurricane Milton’s landfall near Tampa, which occurred as a Category 3 storm on October 9. Despite initial forecasts anticipating losses up to 15%, current estimates suggest actual losses may be around 1%, with some investors potentially seeing returns of up to 12%. The dynamics of the catastrophe bond market remain strong, with a Swiss Re index reflecting a year-to-date increase of over 13%. Analysts predict a positive outlook for future returns as this hurricane season winds down, contributing to the growth of the catastrophe bond market.
