Wildfire
-
Cat bond investors have varying rights to share in subrogation benefits, as it has emerged following the Californian wildfires of 2017-2018.
-
The New York-listed company said in December it expected $17mn catastrophe losses in its Q4 results. -
The Californian wildfires, Hurricane Michael and Typhoons Jebi and Trami pushed up losses.
-
The utility expects to source enough cash to finance its ongoing operations.
-
The updated $110mn to $130mn estimate is more than double the prior projected Q4 loss ahead of the wildfires.
-
Just one of the funds tracked by the ILS Advisers Index reported a positive return for the month.
-
The utility is facing scrutiny over its possible role in sparking the blaze, which was the most destructive in California’s history.
-
As less ILS capital was available at 1 January, retro rates rose by up to 35 percent on loss-hit deals, the broker said in its 1st View report.
-
Analysts welcome offer of redemption share class but say timeframe for realisation is unclear.
-
Quota share and aggregate retro remain the most disrupted pockets of the market ahead of the January renewals, as underlying reinsurance looks flatter.
-
Last year’s feast has repeated on the market as Irma losses deteriorated, while fresh wildfires have caught out those who loaded up on liability exposure.
-
Regulators are currently investigating the beleaguered retro manager’s loss reserving.
