Wildfire

The Saddleridge fire has destroyed 17 structures and damaged a further 77 properties.

Saddleridge is one of several wildfires to have hit California in recent days, with nearly 160,000 acres and 134 structures destroyed.

The wildfire is threatening 13,000 homes and more than 100,000 people have evacuated.

Experts have forecast that the cat bond market will rebound heading into 2020 following low issuance this year, with a diverse crop of maturities likely to drive more favourable dynamics for sponsors.

Pacific Gas & Electric Company has inked its $11bn wildfire insurance subrogation claims deal and criticised an alternative plan put forward.

The utility firm also criticised an alternative Chapter 11 proposal led by Elliott Management.

The settlement was midway between the $20bn insurers sought and an earlier $8.5bn offer.

The programme has been designed to provide $2bn of excess cover for Sempra and CalEdison.

PG&E will be excluded from the initial reinsurance for the California Wildfire Fund.

Fourteen cat bonds with a combined value of $1.18bn are expected to be a full loss following 2017 and 2018 losses, Trading Risk understands.

Non-renewals initiated by insurers surged by 10 percent in the areas of California worst affected by wildfires between 2015 and 2017.

The decision to allow the case to go to trial came despite state officials clearing the utility of responsibility in January.