Wildfire catastrophe bonds transfer wildfire risk to the capital markets, as a mechanism through which insurers, reinsurers or corporate sponsors can access reinsurance risk capital from investors.
Wildfire cat bonds are a small part of the overall catastrophe bond market, but a valuable one as sourcing risk capital from traditional reinsurance markets for this peril can be challenging and costly, hence the capital markets provide welcome additional capacity.
Read our wildfire cat bond news and analysis on this page.
The catastrophe bond market continues to demonstrate increased comfort with the wildfire peril in 2026, with the amount of risk capital deployed to support cat bonds that have some exposure to wildfire having soared to $5.183 billion year-to-date, already nearing the full-year record of $5.55 billion for the peril seen in 2025.
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Speaking this morning during the SCOR earnings call, CEO Thierry Léger commented on the potential for wildfire catastrophe bonds to support European re/insurers, saying that the quantity of ILS will only increase with the quality of the modelling and as there is greater understanding of the influence of climate change on the wildfire peril.
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Mercury General Corporation (Mercury Insurance), the California headquartered insurer, has now set the target for fire reinsurance limit from the new Luca Re Ltd. (Series 2026-1) catastrophe bond issuance at $150 million, while the price guidance for the notes had fallen for a second time, Artemis can report.
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Mercury General Corporation (Mercury Insurance), the California headquartered insurer, is now aiming to upsize its second 144A catastrophe bond sponsorship, with the target for fire reinsurance limit from the Luca Re Ltd. (Series 2026-1) issuance now having risen to between $125 million and $175 million, Artemis can report.
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Mercury General Corporation (Mercury Insurance), the California headquartered insurer, is back in the catastrophe bond market seeking additional fire reinsurance protection, with an initial $100 million target for its second 144A cat bond sponsorship of a Luca Re Ltd. (Series 2026-1) issuance, Artemis has learned.
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The devastating Palisades and Eaton wildfires that struck the Los Angeles area in January 2025 served as a real-world stress test for outstanding wildfire catastrophe bond structures, while also increasing investor confidence in allocating to the wildfire peril, according to Swiss Re Capital Markets.
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The California FAIR Plan Association has now successfully secured its upsized target of $400 million of multi-year wildfire reinsurance protection through its second catastrophe bond sponsorship, with the Golden Bear Re Ltd. (Series 2026-2) cat bond now priced, Artemis can report.
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The California FAIR Plan Association has raised the target size of its second catastrophe bond sponsorship again, with now $400 million of capital markets backed wildfire reinsurance protection sought from the Golden Bear Re Ltd. (Series 2026-2) cat bond issuance, Artemis understands.
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The California FAIR Plan Association is looking to upsize its second catastrophe bond sponsorship by 75%, with now $350 million of capital markets backed wildfire reinsurance protection sought from the Golden Bear Re Ltd. (Series 2026-2) cat bond issuance, Artemis has learned.
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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.
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