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.
Catastrophe bonds that are exposed to the California wildfire peril are expected to face increased levels of volatility and also discounts in their pricing on the secondary market due to the ongoing wildfire events in the state, according to investor Plenum.
Read the full article
The current outbreak of wildfire activity in California is now the most destructive on record and joint deadliest, with the Camp Fire now having destroyed more than 6,700 structures, while the Woolsey Fire has expanded further and as a result multi-billion dollar losses are to be expected for insurance, reinsurance and ILS market interests.
Read the full article
Update: Read our latest on the potential for multi-billion dollar losses from this fire outbreak. A northern California wildfire named the Camp Fire has destroyed more than one thousand homes and structures in less than 24 hours, with around 15,000 more threatened and the fire continuing to spread out of control.
Read the full article
The SD Re Ltd. (Series 2018-1) catastrophe bond transaction, which will be the second California wildfire cat bond covering third-party liability costs, has not grown in size while being marketed, remaining at $125 million while the pricing is expected to settle today at the middle of initial guidance.
Read the full article
A new catastrophe bond transaction has been launched to the market and the SD Re Ltd. (Series 2018-1) transaction is set to become the second California wildfire cat bond covering third-party liability costs, benefiting utility firm Sempra Energy and subsidiaries.
Read the full article
California focused electrical utility PG&E Corporation (the Pacific Gas and Electric Company) now benefits from $200 million of insurance protection against losses related to wildfires, through the completion of Cal Phoenix Re Ltd. (Series 2018-1), the first catastrophe bond to benefit a corporate sponsor using an indemnity trigger.
Read the full article
The Cal Phoenix Re Ltd. (Series 2018-1) catastrophe bond transaction, which is the first pure wildfire exposed deal that will benefit California focused electrical utility PG&E Corporation (the Pacific Gas and Electric Company), may increase in size slightly, but at the same time the proposed coupon has risen 20%.
Read the full article
The first pure wildfire exposed catastrophe bond has come to market, as California focused electrical utility PG&E Corporation (the Pacific Gas and Electric Company) turns to the capital markets and ILS investors as a source of collateralized insurance protection with a $200 million Cal Phoenix Re Ltd. (Series 2018-1) transaction.
Read the full article
