Wildfire

The move comes amid limited availability of annual aggregate cover.

The catastrophe bond offers an increased spread compared to initial guidance.

The target spread has gone up 4% on the high-risk aggregate deal.

The catastrophe bond will take the firm’s cover to $250mn.

The final amount has upsized from the previous $100mn target.

Hurricane Ida was the main loss-making event, but once again secondary perils generated more than half of global losses, according to the latest Sigma report.

The cedant is again seeking multi-peril catastrophe cover in the latest deal.

The fundraise will support collateralised reinsurance deals with the firm initially targeting Californian wildfires.

Farmers Insurance Group is set to sponsor its first catastrophe bond in a two-tranche deal that would provide cover for losses from named storms, severe weather, wildfires and earthquakes, Trading Risk understands.

The broker said that weather-related losses had become more severe in the past decade because of climate change.

The firm has hired former head of specialty at Ariel Re, Amit Shah.

The third wildfire cat bond for the California utility will be its largest to date