Reinsurance giant reports mild end to hurricane season, US and Japan spared

Despite the occurrence of several powerful storms, the 2025 hurricane season inflicted only a small portion of the typical damage across the United States, the Caribbean, and East Asia, according to German reinsurance company Munich Re on Tuesday. The DAX-listed firm provided preliminary estimates, putting total losses at around $22 billion, which is slightly more than one-fifth of the ten-year average, for the period from June to November.

Tropical cyclones, referred to as hurricanes in the North Atlantic and typhoons in the north-western Pacific, develop when ocean surface temperatures are elevated. According to Munich Re's data, 13 tropical cyclones formed in the North Atlantic in 2025, with five reaching hurricane strength. In the north-western Pacific, 28 cyclones were observed, 17 of which reached typhoon intensity.

Typically, the eastern United States experiences the most severe destruction, but this year it largely avoided major storms. Similarly, Japan's typhoon season was comparatively mild. In late October, Hurricane Melissa caused substantial destruction in Jamaica, yet the economic impact there was less than in Japan or the United States, partly due to lower insurance coverage in developing regions. Preliminary estimates suggest Melissa caused nearly $10 billion in damages, making it the costliest hurricane on record.

In East and Southeast Asia, Typhoon Matmo produced heavy rainfall, claiming approximately 40 lives and causing around $3.5 billion in damages. From a global perspective, tropical cyclones caused relatively limited harm in 2025, noted Munich Re board member Thomas Blunck. He emphasized, "This outcome was coincidental. The underlying risk remains significant and is not diminishing."

Author: Sophia Brooks