Wildfire cat bond news

An intriguing new catastrophe bond transaction has launched to the market according to our sources, with the $50 million Power Protective Re Ltd. (Series 2020-1)  transaction being sponsored on behalf of a municipal water and electricity utility operating in the Los Angeles area of California that is seeking wildfire insurance protection.

Quotes received from the reinsurance market at the mid-year renewals did not deliver on the pricing and structure that was sought for the California Wildfire Fund, resulting in the purchase of risk transfer not being completed.

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.

Electrical utility Sempra Energy is seeking to upsize its second catastrophe bond, with the SD Re Ltd. (Series 2020-1) transaction now targeting a $90 million source of California wildfire insurance protection from the capital markets for the company.

Electrical utility Sempra Energy has returned to the catastrophe bond market with a $75 million SD Re Ltd. (Series 2020-1) transaction, as it seeks to extend the California wildfire insurance protection it receives from capital markets investors.

The California Wildfire Fund, which was established last year to back some of the wildfire liabilities related to utilities operating in the state, will go back to the reinsurance market to seek a renewal and an expansion of its first program for 2020 and beyond.

Reinsurance broker and advisor Guy Carpenter has been selected as the sole reinsurance and risk transfer intermediary for the recently established California Wildfire Fund, which is administered by the California Earthquake Authority (CEA).

Rates for renewals of California wildfire exposed reinsurance programs or coverage could see increases of as high as 30% to 70%, as both traditional and alternative markets smart after two heavy loss years, according to S&P Global Ratings.

The California Earthquake Authority (CEA) will look to set up a reinsurance and risk transfer program for California’s recently approved $21 billion wildfire insurance fund, we can now confirm.

The California Earthquake Authority (CEA) is gaining an expanded remit, as it is set to take on administrative responsibility for California’s recently approved $21 billion wildfire insurance fund.