Wildfire

The California Department of Forestry and Fire Protection said the blaze was so far spread across 150,000 acres and was 65 percent contained.

The risk modeller expects $7.5bn-$10bn of insured losses from the Camp Fire and $1.5bn-$3bn from the Woolsey Fire.

Insured loss estimates for the storm have now pushed into the $10bn-$15bn range, from $5bn-$10bn estimates last week.

Morgan Stanley suggested the energy company’s liabilities could surpass $3bn, well above the trigger on the Cal Phoenix Re cat bond.

The Camp Fire and Woolsey Fire have now destroyed 10,000 and 504 buildings respectively.

The uptick is the result of more cat bond holders looking to sell, sources said.

Chubb and Travelers also face losses of around $400mn each should total insured losses hit $10bn, the analyst said.

CoreLogic’s analysis puts nearly 50,000 homes at “high or extreme” risk from the two largest fires in California.

The Camp Fire in Northern California has destroyed nearly 9,000 structures and still threatens 15,500 more.

The acreage burned so far this year is already almost double the amount last year, the ratings agency said.

The three fires have already destroyed 7,539 buildings, and threaten a further 15,000.

USAA is among the top 10 carriers with exposure to the loss and has already eroded aggregate deductibles for the current year of cover after this year’s hurricane season.