Twelve Capital Event Update

4 April 2024

Taiwan Earthquake

At 8:41 am local time on 3 April 2024, Taiwan experienced an earthquake of magnitude 7.4 according to the United States Geological Survey (USGS). The location of the epicentre was 18km south of Hualien city, at a depth of 34.8km. Furthermore, the earthquake triggered tsunami warnings in Japan and the Philippines, which were lifted later. The earthquake was also felt in China. Reports indicate that damage is visible on buildings as well as several buildings having collapsed


FIGURE 1 – Earthquake Intensity – United States Geological Survey

Given the early stage of the damage assessment, it is difficult to approximate insured losses. However, as the Cat Bond market has generally low exposure in this geographic area, we do not expect any visible impact on the market. Japanese Earthquake (and Tsunami) is a small part of the exposure in the Cat Bond market and Twelve Capital’s portfolio, and while there was a tsunami warning in Japan, it was lifted quickly. However, there are a small number of worldwide multi-peril Cat Bonds in the market that might experience some erosion due to their aggregate structures. Therefore, we will continue to monitor the impact on these positions.