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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 →

PG&E pays more for wildfire liability insurance, records Kincade recovery

Pacific Gas and Electricity (PG&E), the California electrical utility worse hit by wildfire losses and claims in recent years, has successfully renewed almost $758 million of insurance coverage against future potential liability claims for fires that its infrastructure was deemed to have started. The costs of the coverage has risen significantly read the full article →

Travelers confirms $400m PG&E subrogation will inure to benefit of reinsurers

U.S. primary insurance carrier Travelers has confirmed that its estimated $400 million PG&E subrogation related recovery will inure to the benefit of its reinsurance panel. Travelers revealed recently that it expects to recognise favorable prior year reserve development related to the wildfires, amounting to approximately $400 million, pre-tax and net of read the full article →

PG&E’s equipment caused Kincade wildfire, $600m+ hit possible

Transmission equipment owned and operated by Pacific Gas and Electricity (PG&E) has been deemed to be the cause of the 2019 Kincade wildfire in Sonoma County California, which could put the company and its insurers on the hook for over $600 million of costs. PG&E, the wildfire stricken California focused electrical read the full article →

Travelers reveals $400m PG&E subrogation recovery, plus $854m Q2 cat losses

U.S. primary insurance carrier Travelers is the first major player to reveal its expectations of making a relatively significant PG&E subrogation recovery, while at the same time revealing $854 million pre-tax catastrophe losses from the second-quarter. As we've been documenting over recent months, Pacific Gas and Electricity (PG&E), the wildfire stricken read the full article →

First pure wildfire cat bond in two years upsized & priced within guidance

The first California wildfire catastrophe bond transaction to be issued since the severe California season of 2018 has successfully been upsized, with utility Sempra Energy's SD Re Ltd. (Series 2020-1) deal now set for $90 million. Not only has the first pure wildfire cat bond in almost two years increased in read the full article →