Investment News - Product

Event Report Typhoon Faxai (as of 27.09.2019)



Assessment of the potential Impact of Typhoon Faxai (as of 27.09.2019)



Event Details

Description
On September 9th, typhoon Faxai, the 2019 season’s fifth major typhoon, made landfall near Yokosuka, located south of Tokyo area, as a category 2 typhoon.

Typhoon Faxai was originated as a tropical depression just east of the International Date Line on August 29th. As it moved West, it quickly intensified into a tropical storm on September 2nd and then upgraded to a typhoon on September 6th. Two days later, Faxai was further strengthened into a Category 4 storm. It finally weakened before making landfall in Yokosuka on September 9th as a category 2 storm with sustained winds around 100 mph.

Damages and Losses
Faxai marks one of the strongest winds ever to strike Tokyo area with sustained wind speed surpassing that of Typhoon Higos and strength comparable to Typhoon Jebi.

Strong winds along with storm surge and heavy precipitation have caused major impacts across Chiba, Kanagawa and Shizuoka prefectures. As of September 26th, 1 person has been killed and 145 people injured. More than 20,000 homes were damaged. Heavy winds and storm surge have damaged two electrical towers and multiple power lines, leaving around 900,000 homes without electricity. The blackout prevented certain areas from pumping up ground water and left more than 25,000 homes with water supply issues.   

On September 15th, modeller AIR has published its view on the industry insured losses between USD 3bn to 7bn.
RMS estimates as of September 25th are slightly more conservative, at USD 5bn to 9bn. 

Two of the leading Japanese primary insurance groups have revealed an expected insured loss at about US $1bn each.

Potential impact on the fund
The WAVe Cat Bonds fund is currently invested in 4 assets exposed to Japan typhoon risk (around 3% of the NAV). Given the current level of information we have, we do not expect any impact on the fund.

We will keep on monitoring the evolution of this event.

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