Twelve Capital Event Update – 19 July 2021

Hurricane situation

Currently there are no active storms in the Atlantic Basin and no hurricane formation is expected within the next 48 hours.

Other events

Since 12 July 2021, many countries across northern and central Europe have been affected by devastating floods with parts of Germany, Belgium and the Netherlands in particular, being severely impacted by the event. Reports suggest that it is the worst flooding Germany has experienced for decades and the insurance industry is therefore bracing itself for insured losses that could reach into the billions.

European flood events are typically not a covered event in Cat Bond coverages and as such Twelve Capital does not expect any impact on Cat Bond holdings from this event.

However, Flood is a covered peril in the private market although the total loss impact remains highly uncertain at this time. Twelve Capital will continue to analyse this event as uncertainty reduces and the overall severity of the event becomes clearer.