Ursa Re Ltd.

Over the last year the California Earthquake Authority (CEA) has benefited from strong execution in the catastrophe bond market to lower both its reinsurance attachment point and costs associated with risk transfer.

Following the mid-year reinsurance renewals the California Earthquake Authority (CEA) now sees catastrophe bonds making up an even larger proportion of its more than $7.83 billion risk transfer tower, at over 33% of the limit provided.

The California Earthquake Authority’s (CEA) risk transfer tower increased in size after the organisation renewed slightly more reinsurance protection at April 1st than was maturing, leaving it with almost $7.8 billion of risk transfer in-force.

The Governing Board of the California Earthquake Authority (CEA) approved a revision to its guidelines for engaging in catastrophe bond risk transfer to the capital markets this week, while also noting a successful reinsurance renewal at April 1st, saying it secured favourable pricing and limit.

As the California Earthquake Authority (CEA) risk transfer needs have been adjusting and its reinsurance tower shrinking, catastrophe bonds now make up almost 32% of the total as of February 28th 2025.

The California Earthquake Authority (CEA) shrank its risk transfer tower through the January renewals, as its traditional reinsurance placements saw further contracts expire, resulting in its catastrophe bonds making up a larger share of the overall at now more than 31%.

The California Earthquake Authority (CEA) has now priced its latest catastrophe bond issuance, successfully doubling the Ursa Re Ltd. (Series 2025-1) offering in size to provide it with $400 million in multi-year collateralized California earthquake reinsurance protection.

Artemis has learned that the California Earthquake Authority (CEA) has now increased the target size for its latest catastrophe bond for a second time, lifting its initial Ursa Re Ltd. (Series 2025-1) offering by 100% to provide $400 million in multi-year collateralized California earthquake reinsurance protection, while the price guidance remains fixed at 7.5%.

The California Earthquake Authority (CEA) has increased the targeted amount of multi-year collateralized California earthquake reinsurance protection it seeks from capital market investors through its new Ursa Re Ltd. (Series 2025-1) issuance, with now up to $375 million of coverage being sought, while the price guidance has been fixed at 7.5%, Artemis has learned.

The California Earthquake Authority (CEA) has returned to the catastrophe bond market to sponsor its first issuance since late 2023, seeking $200 million or more in multi-year collateralized California earthquake reinsurance protection from the capital markets through this Ursa Re Ltd. (Series 2025-1) issuance.