Strong Earthquake in Mexico

icn-dark-earthquake8 September 2017

On 8 September 2017 at 4.49 UTC, there was an earthquake with a magnitude of 8.1 near the Pacific coast line of Mexico. This is likely to be the strongest earthquake in Mexico in more than a century. USGS reports a depth of less than 70km with shaking still being felt in Mexico City.

Large parts of the country were exposed to significant shakes which is likely to have caused substantial damage to buildings and possibly human life. A Tsunami warning was also issued.

Generally, the insurance industry’s exposure to Mexico is moderate, especially compared to other perils and geographies. Based on currently available information and analysis, we expect an impairment of the IBRD Fonden 2017 Cat Bond transaction covering Mexican earthquake risk. Twelve Capital is an investor in this transaction via some of its managed portfolios. The damage assessment for private ILS transactions is under way and will be conducted as soon as the relevant information becomes available.

Friday, 08 September 2017