Hong Kong insurers are bracing for up to $US1 billion ($1.4 billion) in Mangkhut-related losses, S&P Global Ratings says.

Super-typhoon Mangkhut ­ named for the Thai word for mangosteen, a purple tropical fruit with juicy white flesh – is the year’s most powerful storm so far. It severely damaged the financial hub’s roads, buildings, properties and other physical infrastructures.

Neighboring Macau, home to many casino resorts, was also badly hit by the storm and will add to the claims loss burden facing the Hong Kong insurance industry.

“The compounded effects of wind and storm surges will likely drive claims for property damage, business interruption, and autos,” S&P says. 

“Furthermore, the inward reinsurance from Macau will further propel underwriting loss.”