third party liability


Allstate’s wildfire subrogation recoveries reach $605m

U.S. primary insurance giant Allstate has revealed that it expects to receive around $605 million in subrogation recoveries on claims related to the California wildfires, with a significant percentage already booked. Previously, Allstate had reported $450 million of PG&E related subrogation related to California wildfires claims, which included subrogation due on read the full article →

CATCo retro fund rises 7% on reduced 2017 wildfire claims (subrogation?)

Some shareholders in the CATCo Reinsurance Opportunities Fund Ltd., Markel CATCo Investment Management’s listed retrocession focused investment fund, have benefited from a reduction in claims related to California's 2017 wildfires, perhaps suggesting a subrogation recovery has made its way through to the portfolio. The in-run off retrocessional reinsurance focused investment fund's read the full article →

SoCal Edison agrees $2.2bn Woolsey Fire subrogation settlement

California electrical utility Southern California Edison has agreed a $2.2 billion payout to settle all insurance subrogation claims from pending litigation related to the 2018 Woolsey Fire and expects to exhaust its remaining $700 million of wildfire coverage as a result. As we explained previously, following Pacific Gas and Electricity’s (PG&E) read the full article →

First parametric wildfire cat bond Power Protective Re prices up 9%

The first ever parametric solely wildfire exposed catastrophe bond to hit the market, the $50 million Power Protective Re Ltd. (Series 2020-1)  transaction being sponsored on behalf of a municipal water utility operating in the Los Angeles area, has seen its pricing move up by around 9% before it closed. The read the full article →

LA municipal water utility seeks wildfire cover with Power Protective Re cat bond

An intriguing new catastrophe bond transaction has launched to the market according to our sources, with the $50 million Power Protective Re Ltd. (Series 2020-1)  transaction being sponsored on behalf of a municipal water utility operating in the Los Angeles area of California that is seeking wildfire insurance protection. Power Protective read the full article →

Flow of wildfire subrogation benefits continues with SoCal Edison recoveries

While wildfire subrogation recoveries are now being seen across reinsurance and insurance-linked securities (ILS) from utility Pacific Gas and Electricity's (PG&E) massive $11 billion settlement payments, the flow of recoveries will likely continue thanks to a new agreement from Southern California Edison, as well as possible future agreements. As we explained read the full article →

ILS fund subrogation benefits from PG&E may take a year to flow

While Pacific Gas and Electricity (PG&E), the wildfire stricken Californian electrical utility, made its $11 billion of subrogation payments in July, the benefits for insurance-linked securities (ILS) funds are expected to take as long as a year to be fully accounted for in the valuation of their exposed ILS and read the full article →

Some of USAA’s loss hit cat bonds get wildfire subrogation return of principal

Some of the loss hit catastrophe bonds sponsored by U.S. primary mutual insurer USAA have benefited from a return of principal with respect to previously made loss payments under certain reinsurance agreements, presumably a sign of wildfire related subrogation recoveries flowing to the benefit of cat bond funds and investors. USAA read the full article →

CATCo warns re/insurers’ sale of PG&E claims may reduce subrogation recovery

The fact that insurance and reinsurance companies sold California wildfire related claims to third-parties may ultimately reduce the amount of subrogation recoveries that flow back to reinsurance and retrocessional interests, it appears. This morning, in an interim financial report for the in run-off CATCo Reinsurance Opportunities Fund, the listed retrocessional reinsurance read the full article →

Allstate records a $450m PG&E subrogation recovery

U.S. primary insurance giant Allstate has recorded a significant $450 million PG&E related subrogation on claims related to the California wildfires, which is the figure reported by the carrier net of reinsurance adjustments. Allstate becomes the third major insurance carrier to report a subrogation recovery payment from the wildfire stricken Californian read the full article →