Global Tropical Storm activity continues to be focused on the East and Central Pacific. As of the latest National Hurricane Centre advisory, and for the second time this season, three simultaneous hurricane strength storms; Polo, Odalys and Nolo, are present in the East and Central Pacific.

Polo, offshore from Mexico’s west coast, has remained a powerful storm, oscillating between Category 4 and 5 status since Tuesday. Polo is expected to make landfall as a weaker Category 2 storm on the Baja California Peninsular early next week. Limited insurance impacts are expected due to the sparsely populated area of impact. Polo also brought the USD 175 million IBRD CAR Mexico 2024 (Pacific) parametric catastrophe bond into focus this week, prompting bid/ask spreads to widen in response to uncertainty regarding track and intensity.  Current projections however suggest a triggering of the bond to be unlikely.

Odalys, further to the west has strengthened to major, Category 3, hurricane status but remains no threat to land. Nolo, south of Hawaii, is the latest storm to cause an unprecedented third hurricane watch to be issued for the state. Nolo is currently tracking north towards Hawaii but is forecast to turn westward while strengthening to a major hurricane over the weekend. The centre of the storm is however expected to stay well south of Hawaii’s Big Island, with impacts limited to flooding and tropical storm strength winds.

Prior to 2026 the last time three hurricanes were simultaneously present in the Eastern or Central Pacific was late August 2015, with Kilo, Ignacio and Jimena all simultaneously Category 4 hurricanes. 2015 was another notable strong El Niño year.

In the Atlantic, tropical storms Fay and Gonzalo, are both expected to be short lived, with neither storm expected to threaten 2026’s record low activity, with no hurricane strength systems yet this season.

As always, Twelve Securis continues to closely monitor any catastrophe events and will issue specific updates on any relevant new major events which occur.

Please feel free to contact us with any questions.

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Twelve Securis

For professional or qualified investors only. This material is provided for informational purposes only and does not constitute investment advice or a solicitation or offer to buy or sell any financial instrument.

Image source: NOAA.