A Bermudian-based catastrophe bond has passed its attachment point with an impact of more than $195 million at the end of November, it was reported.

The attachment point for the $200 million cat bond — the stage at which qualifying losses start to erode investors’ principal — was set at $175 million, so if the losses are confirmed, investors would face a loss of at least $25 million of the principal on the deal.

Specialist online magazine Artemis said that qualifying losses from severe thunderstorm peril, which includes tornado, hail and straight line winds from convective weather, rose throughout last year, which took the reported estimate of qualifying ultimate net losses dangerously close to the attachment point.

Artemis added that sources had said that the loss tally for Gator Re, a special purpose vehicle set up by Florida-based American Strategic Insurance, had risen during last November.

But the Artemis report no events had occurred in December that could add to the losses.

The loss reports are initial estimates and subject calculation agent assessment and revision if needed.

Most of the increase in the loss tally is said to be from events earlier this year, with around $7 million from events in November.

The report added: “However, the fact that these reports show the deal has been triggered by such an amount would seem to suggest that investors must ready themselves for some erosion of capital and that not all of the principal will be returned at the end of the deal’s term, which is the end of 2016.”

And it said that, as it was the aggregate Section B coverage that faced losses, only the amount that losses extend above the attachment point would be lost.

But Artemis warned that other events in December could add result in further qualifying losses to the bond, so the final estimated loss report at the end of the coverage period could be higher.

A partial repayment is set to be the end result for Gator Re and the cat bond was set to face an extension event at the end of last year, where the losses would be firmed up and reported back to investors.

But Artemis cautioned that loss estimates could go down as well as up, so any loss of principal could fall as well as rise.

The Gator Re cat bond was set up in 2014 and was expected to run for around two years and nine months to the end of last year.

The bond was marketed with an initial size of $125 million, later increased to $200 million.