CatCo makes further storm provisions – CatCo Reinsurance Opportunities has just released updated NAVs as at the end of September 2019. The NAV of the ordinary shares is down to 30 cents and the C share NAV is said to be 57 cents.
The company has been making provisions against its anticipated losses from recent storms: 1.69% and 2.53% respectively have been taken off the ordinary and C share NAVs for Hurricane Dorian and Typhoon Faxai. Dorian was the storm that levelled large swathes of the Bahamas (said to be the worst storm in that country’s history). Faxai was the storm that hit Japan in the second week of September, causing widespread blackouts and some injuries.
CatCo is potentially exposed to losses arising from Typhoon Hagibis, which is said to have killed 72 people in Japan. The announcement says “The investment manager will assess the effect and the need to establish a specific loss reserve for Typhoon Hagibis in forthcoming NAV calculations, once sufficient industry loss information is available.”
CAT : CatCo makes further storm provisions