Ursa Re Ltd.

The California Earthquake Authority (CEA) is back in the catastrophe bond market, seeking $175 million or more in reinsurance protection with an Ursa Re Ltd. (Series 2023-1) transaction.

As the California Earthquake Authority (CEA) fast approaches one of its major reinsurance renewals for the year at April 1st, the earthquake insurer has seen the risk transfer program shrink a little further to just under $8.1 billion by January 31st.

One of the world’s largest reinsurance buyers the California Earthquake Authority (CEA) has had its ratings downgraded because its claims paying capacity has been reduced, with lack of reinsurance one of the driving factors.

The California Earthquake Authority (CEA) has seen the traditional reinsurance component of its risk transfer arrangements shrink further at the 1/1 renewals, according to the latest estimate from the insurer.

The California Earthquake Authority (CEA) was unable to fully renew all of its expiring reinsurance at October 1st resulting in a further shrinking of its risk transfer program and now the CEA is unsure whether it can renew all its expiring limit at the January 1st 2023 renewal as well.

The California Earthquake Authority’s (CEA) reinsurance and catastrophe bond based risk transfer program has shrunk back to just slightly under $9.3 billion in size, as the insurer also experiences challenges in the market due to harder pricing.

The board of the California Earthquake Authority (CEA) has voted to approve a motion for the insurer to buy sufficient risk transfer to support claim-paying capacity at no less than the 1-in-350 year level and no greater than the 1-in-500 year level.

The California Earthquake Authority’s (CEA) reinsurance and catastrophe bond based risk transfer program shrank slightly by December 1st 2021, but with forecasts suggesting it could need to buy as much as $6 billion more in limit over just the next 5 years, further growth seems likely.

The California Earthquake Authority (CEA) increased the size of its reinsurance and catastrophe bond risk transfer program by around 4.4% as of the end of July 2021, to reach almost $9.6 billion, but in the short-term future growth of the program seems less certain due to rising exposure and the cost of coverage.

The California Earthquake Authority (CEA) is targeting to increase the size of its risk transfer and reinsurance program to a new high of almost $9.8 billion of limit in 2021.