State Farm
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The cat bond limit total is an uplift of around 60% on the carrier’s 2024 bonds. -
The mega cat bond season in Q2 last year recorded issuance of $8.2bn.
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Commissioner Lara also proposed a $500mn cash infusion from parent State Farm.
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State Farm General has asked California regulators for an emergency rate increase.
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The carrier has paid $1.75bn on around 9,500 claims filed from the wildfires.
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The insurer disclosed the estimates as it seeks emergency rate hikes from regulators.
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The company says the recent wildfires will be the costliest in its history.
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A negative January return will be unprecedented for ILS industry.
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The sponsor was targeting between $850mn-$1.1bn of coverage in the latest mega-bond to hit the ILS market.
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The deal will expand the region and perils covered by Merna Re bonds.
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The carrier currently has $1.15bn of Merna Re cat bond limit on risk.
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Carriers have been dealing with elevated storm activity this year, whilst additional purchases to match inflating values had largely been parked in 2023.
