Twelve Capital Event Update – 26 August 2019

Summary

The fourth tropical storm in this year’s Atlantic hurricane season, Dorian, has formed around 600km Southeast of the Lesser Antilles. The system is expected to gradually strengthen into a category 1 hurricane by Wednesday with a trajectory towards the Dominican Republic. Afterwards, the current forecast expects the system to decay and to weaken into a much less powerful tropical depression. Should these forecasts turn out to be accurate, Twelve Capital does not expect any significant impact on the ILS market.

Another tropical depression East off the coast of Georgia could potentially strengthen into a weak tropical storm by Tuesday, but is expected to head Northeast into the Atlantic Ocean anyways with no impact expected.

Further information has been released on Typhoon Lekima, which recently made landfall in China as a category 2 typhoon. The economic loss estimates have been updated to about USD 7.6bn, while the insured loss was recently put at USD 855m (source: AIR Worldwide). At this point in time, Twelve Capital does not believe that this will have a significant impact on its portfolios.

In the Pacific a few hundred kilometres from the coast of Mexico, Tropical Cyclone Ivo has weakened over the weekend to a tropical depression with maximum sustained winds not exceeding 50 km/h. The storm is forecasted to get even weaker and to dissipate over the next days.

Furthermore, Tropical Storm Bailu hit Taiwan with large amounts of rain. Bailu is currently no longer a tropical storm but still has large rainfall potential for China over the coming days. No significant impact on the ILS market and on Twelve Capital Funds is expected.

Other recent events

No other events have occurred since the last publication that would call for investor attention.

Monday, 26 August 2019