On 19 June, Hurricane Erick — the fifth named storm of the Eastern Pacific season — made landfall in southwest Mexico as a major Category 4 hurricane. Having rapidly intensified from a tropical storm as it neared the coast, Erick brought destructive winds and heavy rainfall, particularly across the region’s mountainous terrain.

In the cat bond market, the primary exposure to Mexican Pacific storms comes from a single bond issued by International Bank for Reconstruction and Development (IBRD), which features a parametric trigger based on the storm’s reported central pressure. Based on the latest pressure estimates from the designated reporting agent, we do not expect any impact to this bond or to any positions held by Twelve Securis. Likewise, no impact is expected to any Private ILS positions managed by Twelve Securis as a result of Hurricane Erick.

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