Wildfire cat bond news

The California FAIR Plan Association has returned to the catastrophe bond market for its second sponsorship, seeking $200 million or more in capital markets backed wildfire reinsurance protection through a Golden Bear Re Ltd. (Series 2026-2) cat bond issuance, Artemis can report.

The California FAIR Plan, having recently come to market to sponsor its debut wildfire catastrophe bond and secured $750 million of reinsurance from the Golden Bear Re Ltd. (Series 2026-1) issuance, has now commented on the deal to say that the cat bond “augments” its robust reinsurance program arrangements.

The California FAIR Plan Association has now successfully priced and secured what will become the largest catastrophe bond exposed to wildfire risks ever, as the Golden Bear Re Ltd. (Series 2026-1) issuance will provide it $750 million of reinsurance, Artemis can report.

Having upsized the target for its debut wildfire catastrophe bond sponsorship to a significant $750 million of reinsurance, we’ve now learned that the California FAIR Plan Association is also seeking to reduce the risk interest spread it will pay for the Golden Bear Re Ltd. (Series 2026-1) issuance as well.

The California FAIR Plan Association has raised the target for its debut wildfire catastrophe bond Golden Bear Re Ltd. (Series 2026-1) to provide it an even more meaningful $750 million of reinsurance, while the price guidance for the notes has been revised at the bottom of initial guidance, Artemis understands from sources.

The California FAIR Plan Association is aiming to upsize its debut catastrophe bond, with the target size now raised to secure between $350 million and $500 million in wildfire reinsurance protection through the Golden Bear Re Ltd. (Series 2026-1) cat bond issuance, Artemis has learned.

As catastrophe risk models for assessing wildfires continue to advance, and as the industry experiences ongoing refinements in pricing and coverage through lessons learned from each new fire season, wildfire catastrophe bonds are anticipated to persist as a permanent and growing feature of the cat bond market, according to Acrisure Re.

The California FAIR Plan Association is sponsoring its first catastrophe bond, with an initial target to secure $250 million or greater in capital markets backed wildfire reinsurance protection through a Golden Bear Re Ltd. (Series 2026-1) cat bond issuance, Artemis has learned.

The catastrophe bond market has shown increasing confidence in assuming wildfire risk even after the major disaster that struck the Los Angeles region of California at the start of this year, with already over $3.375 billion of cat bonds issued in 2025 that have an exposure to the wildfire peril.

Mercury General Corporation, the California headquartered insurer, has now successfully priced its first 144A catastrophe bond, securing the 50% upsized $150 million in reinsurance protection from the capital markets with the Luca Re Ltd. (Series 2025-1) issuance that will cover it for wildfire and fire-following earthquake losses in its home state, Artemis can report.