(Re)insurers are expected to absorb close to $500mn of losses stemming from Hurricane Nate, modelling firm Karen Clark & Company (KCC) has estimated.

This figure includes insured wind and storm surge losses to residential and commercial properties, as well as industrial properties and automobiles, KCC said.

Hurricane Nate formed as a tropical depression at the beginning of October, upgrading to a tropical storm on 5 October and then a Category 1 Hurricane the next day. The catastrophe caused widespread flooding to parts of Costa Rica and Nicaragua.

The storm was forecast to become a Category 2 Hurricane, but the expected intensification did not materialise, KCC noted.

Nate follows a recent spate of significant natural catastrophes in recent months, including Hurricane Harvey, Irma and Maria as well major earthquakes in Mexico, which are collectively expected to have wiped out more than $100bn of industry capital.