Wildfire

Jonathan Rinderknecht was arrested Tuesday on destruction of property charges.

The model becomes the second in the state to get approval to affect ratemaking applications.

Mercury’s recovery from the guaranteed percentage of losses is $47mn.

This comes in at the lower end of the initial spread guidance of 725-775 bps.

The Californian insurer had a private deal, Randolph Re, that provided pure wildfire protection.

Up to nine million acres of US land are considered likely to burn.

The CEO said private ILS funds can generate additional returns of 10%-20%.

Private ILS would benefit from extension spreads to manage investor concerns, the CEO argued.

The insurance industry has experienced mounting losses from severe convective storms.

Premiums ceded to the ILS vehicle increased by 76% to $433mn.

Commissioner Lara also proposed a $500mn cash infusion from parent State Farm.

Island appetite remains stable, but early 2025 loss activity has injected fresh uncertainty.

The bond was trading at around 12.3c on the dollar in the secondary market last month.

“We do not have the luxury of time,” he said during the Bermuda Risk Summit.

This came as the market’s underwriting profit dipped 10% for 2024.

There is the potential for cat bond H1 issuance to be a record breaking six months.

As of 14 February, the company received 405 claims.

The London D&F market will shoulder most of the losses.

The reinsurer pegged the market loss at $40bn.

The carrier pegged its LA wildfire losses at EUR140mn.

Dispersion of returns was high, with the range 0.87% to -3.71%.

The programme structure was expanded, but it is unclear what percentage was placed.

The cost of reinstatement was included in $170mn wildfire net loss figure.

Climate change and other loss impacts were not adequately incorporated, sources said.

State Farm General has asked California regulators for an emergency rate increase.

Hurricane Milton accounted for 60% of the firm’s Q4 large loss tally.

The carrier expects the market loss to land at $35bn-40bn.

The carrier has paid $1.75bn on around 9,500 claims filed from the wildfires.

The carrier estimated January cat losses of $1.08bn, or $849mn after-tax, including the fires.

Wildfire loss ‘serves as a strong reminder not to unwind hard-fought for rates and terms’, the executive said.

The carrier said 72% of those losses occurred in personal property.

A higher loss quantum will put a greater burden on retro programmes.

The estimate is net of its per-occurrence reinsurance program and gross of tax.

Insurers have paid $6.9bn in Southern California wildfire claims in the first four weeks of recovery.

The loss aggregator has classified the fires as two separate events for reinsurance purposes.

Wildfire is rarely singled out as an exposure that can shift portfolio outcomes.

The fall marks this the first time in 20 years the index has been negative in January.

More than 33,000 claims had been filed as of 5 February.

The firm will match segregated accounts of portfolios to investor mandates.

The carrier is “extremely well capitalised” to achieve its strategic ambitions.

The insurer disclosed the estimates as it seeks emergency rate hikes from regulators.

The company will ‘aggressively pursue subrogation’ for the Eaton Fire.

The LA fires ‘demonstrate the magnitude of tail events not well captured in modelling’.

Ultimate losses from the Palisades, Eaton and Hurst fires are estimated at $4bn.

The LA-based firm estimated gross cat losses in the range of $1.6bn-$2bn.

The carrier’s reinsurance premiums ceded rose by 32% to $3.4bn in 2024.

CFP has a $900mn reinsurance attachment point and is still receiving claims daily.

AuM remains generally flat at UCITS funds over the weeks since LA fires started.

FY24 disclosures show shifting fortunes at reinsurer ILS platforms.

But cat bonds are experiencing negative secondary market price movement.

The carrier is likely to exceed its Q1 large-loss budget due to the California wildfires.

The carrier disclosed it will book $1.1bn in net losses from the California fires.

The group ceded 55% more premium to Nephila over the year at $1.3bn.

The carrier has been reducing its presence in the state since 2007.

The carrier has recognised two separate losses for the Palisades and Eaton fires.

The company says the recent wildfires will be the costliest in its history.

Programs did not offer adequate risk-adjusted return.

A negative January return will be unprecedented for ILS industry.

The company’s reinsurance business also has some exposure, the executive said.

The carrier has around $2.5bn-$4bn of reinsurance cover specifically for California risk.

The bond went on watch after Mercury said it would exceed its $150mn retention.

The Floridian also expects to report its “best earnings quarter” for Q4 2024.

The figure does not include specie or auto losses.

Secondary pricing on the carrier’s Topanga Re bond partly recovered following the guidance.

The company received over 10,100 home and auto claims as of January 27.

Compared with its initial figure, CatIQ’s latest estimate has increased by 40%.

Secondary market pricing indicated anticipated California wildfire losses.

Guy Carpenter said personal lines exposure would account for 85% of the aggregate loss.

Fitch said 1Q wildfire losses could add 6% to 10% to Mercury’s CoR.

The total includes fire and smoke damage plus living expenses for evacuees.

The fire started Wednesday morning and is currently 0% contained.

The carrier’s Milton loss came in below expectations, but its fire claims will be “material” in Q1.

Losses from the larger fire will amount to $20bn-$25bn, the modeller said.

Two 2021 worldwide aggregate ILW notes are also among the markdowns.

The carrier has received more than 3,600 claims from LA wildfires.

There are many unknown factors including insurance gaps, high-value property and damage to critical infrastructure.

The anticipated portion ceded to reinsurance may reach the mid-to-high single-digit billions, it added.

This will be the most expensive fire in the state’s history, it said.

A $30bn industry loss would use one-third of Big Four’s 2025 cat budgets.

ILS managers expect the losses to have some impact on future cat bond spreads.

Sources say the Fair Plan is under-reserved, leading to the possibility of member assessment.

The carrier is the largest writer of homeowners’ multi-peril in the state.

The Palisades fire is estimated at $9bn-$12bn, while Eaton is $6bn-$8bn.

Investigators are homing in on the likely causes of the incidents.

The number of structures damaged may put the event on par with the fires of 2017 and 2018.

The company’s stock price has plummeted in the wake of the LA wildfires.

Total economic and insured losses are “virtually certain” to reach into the billions.

AM Best said it expects insured losses from the California wildfires to be “significant”.

Plenum said impact is marginal because wildfire contributes only marginally to the risk of bonds.

Moody’s also expects losses in the billions of dollars.

Six wildfires are now burning in SoCal, with the Palisades fire being the largest.

Six fires now cover more than 27,000 acres across Southern California.

Hurricane Milton resulted in the largest insured loss of the year at $25bn.

The fast-moving blazes have prompted evacuations across the city.

More than 4,000 acres are burning as thousands evacuate.

Homeowners’ insurance rates have spiked almost 60% since 2018.

The regulations are part of a state effort to expand wildfire coverage.

The bond will provide multi-peril coverage in the US and District of Columbia.

The bond is split into three tranches of notes.

Key floods this year outside of the US include the Rio Grande do Sul.

The broker replaces Goldman Sachs on the business after the bank ceased offering ILS services.

The effort will draw from California’s research and higher education communities.

The estimate from the Perils-owned company does not include any losses from Hurricane Debby.

The rate change will be implemented in November.

The Insurance Bureau of Canada said the blaze damaged one-third of the Jasper community.

The regulations have been officially published online, with a hearing to be held next month.

The ratings agency warns that wildfire is an increasingly risky and unpredictable peril.

Its Class 13 and 14 notes priced roughly at the midpoint of expectations.

The partnership seeks to serve corporates with captives, Lloyd’s syndicates and ILS funds.

The cover will be triggered on an indemnity, annual aggregate basis.

He will oversee the syndicate’s catastrophe modelling capabilities.

The RfP covers the CEA and/or the California Wildfire Fund.

Insured loss estimates are not yet available.

The insurer confirmed it would be targeting 77% of the original principal amount.

The carrier has also lifted the effective coupon to 29.9%.

The sponsor had initially sought $150mn of coverage last month.

American Family had initially sought $150mn of coverage before scaling the bond to $175mn.

The sponsor is seeking coverage for named storms, winter storms, wildfire, earthquake and severe thunderstorms in the US.

The US peak peril cat bond has upsized to $325mn from an initial target of $200mn.

High Point Re is Selective’s debut cat bond.

All 50 US states and the District of Columbia are covered by the bond.

Hannover Re said it was in discussions with retro partners about buying less in 2024.

The group’s ceded large losses reached 17% of gross losses, up from 11% a year ago.

The bond is offered with price guidance in the range 500-575 basis points.

“That’s one of the things we're monitoring ... but I think there are positive signs in the marketplace that litigation is down,” Garateix told analysts on the company’s third-quarter earnings call.

Asagao VI is fourth largest private cat bond deal this year.

By region, convective storms in the US alone accounted for 60% of global insured losses.

Experts agreed that investment in understanding wildfire risk had come a long way in recent years.

Lara's plan, backed Thursday by an executive order from California Governor Gavin Newsom, repackages elements of a proposed bill that collapsed earlier this month.

Carriers have announced significant exposure reductions in the state this year.

Total losses for the year from April now exceed $3.5bn.

The estimate includes privately insured damage to residential, commercial and industrial property, as well as automobiles. Boats, offshore properties and NFIP losses were excluded.

The reinsurance broker said the losses will fall on the higher end of industry loss ranges.

The estimate is based on the impact to approximately 200 structures where RLI provided primarily homeowners’ insurance.

Large carriers with geographic spread across the continental US will have the capital and reinsurance coverage to absorb losses related to the wildfires, according to AM Best.

The agency put insured property values in the burn footprint at $2.5bn to $4bn, which marks an uptick compared to Moody’s estimate from last week, when the agency pegged insured losses at around $1bn.

Homeowners’ and commercial insurance policies typically exclude floods, mudslides, debris flow and other similar disasters unless directly or indirectly caused by a recent wildfire.

"Finally we feel things are moving forward," says West Kelowna fire chief Jason Brolund.

The development in reconstruction costs and contingent BI claims may put the ultimate sum beyond current estimates.

The latest estimates peg the fires as the second largest loss event in the state’s history, second only to Hurricane Iniki in 1992.

Primary writers of homeowners and commercial property are exposed, while reinsurers could face wildfire losses.

The modelling agent estimated that the total number of buildings within the fire perimeter is approximately 3,500.

Tens of thousands of people have been evacuated from the island, and nearly 14,000 Maui residents remain without power.

The broker said the risk from wildfire is also set to increase substantially.

Compelling rates are on offer for markets willing to write wildfire risk in the sunshine state.

The comment comes after major US carriers pulled back from new business in wildfire-prone California.

The multi-peril bond will cover all 50 US states and the District of Columbia.

Brian Espie has been appointed as CUO having previously held the position of group head of North American reinsurance at Fidelis.

The deal includes $65mn of Class B discounted notes which offer an effective coupon of 25%.

The Class A notes on the latest deal are offering 250 bps more compared with a similar placement last March.

The deal has secured $100mn of limit for insurer American Family, rather than pushing out to a $125mn top-end target.

The modelling firm noted a shift towards stronger hurricanes making landfall.

The modeler warned that climate change was increasing the chances of $20bn, $30bn and $40bn loss events.

The American Family bond will provide US wind, quake and wildfire cover.

The bond will provide coverage up to 2026, extendable to 2029.

The cover is triggered by PCS territory-weighted industry loss and attaches at $12.5bn.

The increased yield reflects the harder post-Ian market.

The cover will be triggered by territory-weighted annual aggregate industry loss.

The firm said a new CUO hire is pending.

If Hurricane Andrew were to hit the coastal regions of Florida today, insured losses would be nearly four times the $15.5bn borne by carriers 30 years ago.

France’s Gironde region struck by serious wildfire outbreak

The parties will develop climate-conditioned wildfire event catalogs to support cat modelling.

The McKinney and Oak fires are 0% and 67% contained, respectively.

Initial loss estimates from convective storms and flash flooding place the economic impact in the hundreds of millions, although Aon warned losses may rise further.

A further 3,271 structures, including both homes and businesses, are under threat from the wildfire.

Bosnia & Herzegovina saw a 246% increase in the amount of land burnt in the past year.

Fires in Portugal, Spain, France, Greece and Croatia have caused widespread crop damage.

Storms from 16-23 June added to a “very active” quarter for the peril.

Investors, fund managers and service providers are adapting in the face of potential large losses from secondary perils.

The Bermuda-based InsurTech will deploy a combination of its own and rated paper capital.

Severe convective storms in the US caused hundreds of millions of losses, while a small number of expensive homes in California were hit by a wildfire

The incoming SVP joins from BMS Re, where she led the catastrophe analytics team for more than 10 years.

The company’s new models will be generally available in June for major perils including US flood, US wildfire and Japan typhoons.

The 5%-7% uplift came in ahead of a smaller November gain connected to 2019 catastrophes.

December gains of 0.05% marked the third consecutive positive monthly return.

The company will use the funding to invest in new software hires and expansion in Hong Kong and Madrid.

Pacific Gas and Electric Company told investors in November that it expects to recover $569mn from its insurers on a potential $1.15bn liability relating to the Dixie Fire in California.

The blaze destroyed 1,000 structures and damaged a further 100 in the state’s most destructive wildfire incident.

A heavy snowfall helped to bring the major conflagration under control.

The fires are being fanned by winds of up to 115mph around the towns of Superior and Louisville.

The carrier's first cat bond featured a new subrogation extension mechanism.

Pricing was generally stable but investors are showing more aversion to specific climate-exposed perils, sources noted.

It had previously sought $100mn.

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

The manager has faced a challenge to its buyout offer based on concerns over value.

Some of the insurer’s bonds were among those modestly marked down after Ida.

The offering is the latest in a developing wildfire reinsurance marketplace.

While the cat bond market has avoided losses this year, any move to sell up cat bonds could act as a counterweight on spreads in the run-up to January renewals.

California wildfire loss notifications relating to 2017 and 2018 fell.

Hot and dry weather conditions increase the challenges as Dixie and Caldor near full containment.

The fund’s post-Irma shareholders made a small loss in the same period.

The fire is now 67% contained and has so far burned 219,267 acres, but no further structural damage has been reported.

The fire is now 65% contained but has so far burned 219,267 acres and destroyed 1,003 buildings.

Economic losses from Hurricane Ida are likely to reach double-digit billions as costs rise globally from widespread cat events, Aon said.

The Fidelis CEO said stochastic modelling was “pretty much meaningless” and failed to consider the impact of climate change.

The fire has burned through more than 215,400 acres and spread across the counties of El Dorado and Amador.

Casinos and ski resorts have shut down, and hotels are housing firefighters in usually buzzing holiday destinations near South Lake Tahoe, California.

The Caldor Fire, which is 18% contained, has been active for 17 days and in that time destroyed 675 structures and damaged 40.

It has just one class of notes which will trigger on an indemnity, per occurrence basis against any wildfire in the state of California.

It recognised the debate surrounding the “plausibility” of such scenarios.

The National Federation of Agricultural Workers' Unions has estimated that 73 wineries and five cooperatives have been affected.

The second-largest fire in California’s history has so far affected mostly woodland areas.

So far, damage costs caused by the California fire are thought to be below $1bn.

Winds and high temperatures point to potential further growth of the blaze.

The fire is the second largest in California’s history behind the August Complex Fire last year.

Pacific Gas & Electric Company has been ordered to explain its potential role in starting the blaze.

The blaze is in Butte County, just east of the city of Chico and above the Cresta Dam.

Environmental, social and governance (ESG) factors were the primary driver in 13% of ratings actions in the year to the end of March, according to AM Best.

The blaze is threatening 600 structures in a year when the number of wildfires has exceeded that of record-breaking 2020.

Citing this summer’s heat waves and the drought across the West, AM Best warns that insured wildfire loss totals may climb higher than 2020’s $1.2 bn.

In the last round of marketing, the firm said it would lift the principal to $125mn-$150mn after initially seeking just $100mn.

The carrier initially said it would seek just $100mn for the global multi-peril deal.

In the later stages of its liquidation, the manager’s listed fund has made an 8% uplift in May on fire releases.

It will be the insurer’s first foray into the cat bond market.

The California Insurance Working Group suggested the policy to cover areas with high wildfire risk.

Pricing on the transaction’s two layers had mixed outcomes.

The worldwide aggregate ILW bond covers an unusually wide range of perils for the cat bond sector.

The insurer has been able to lower its projected premium by 3%.

The cat bond will renew an expired 2017 multi-peril deal for the US insurer.

The ILW deal will offer a spread of 1775-1850 basis points (bps), including a wide range of perils and notably high coupon for the ILS market.

The former Blue Capital portfolio manager is joining the wildfire-focused MGA to lead underwriting.

Projected spreads on the deal fell by 10%-11% in early marketing.

The reinsurer joins Everest Re in seeking industry loss-based ILS cover ahead of mid-year renewals.

Class C investors who entered the retro fund after the 2017 hurricane season made a 1.3% loss for the year, although wildfire subrogation meant a gain for ordinary shares.

Tighter cat bond spreads will prevail until issuance catches up with investor demand, the firm forecast.

The broker says the ILS alliance will "meaningfully increase" its capacity in three segments.

Policyholders have filed some 730 claims after fires hit hills outside the western city.

Event definitions were also tightened at renewals, the broker said.

Insurers already face A$40mn in claims, a level set to rise and potentially affect reinsurance.

The manager has extended a fee discount to side-pocketed capital.

The utility did not disclose which insurers would receive payments.

The broker’s figure is 40% higher than its annual average for the 21st century, with the bulk of losses coming from the US.

US hurricanes, storms, wildfires and civil unrest resulted in the carrier’s net cat loss burden doubling to $1.6bn.

Evacuation orders were issued for 120 homes near San Mateo and Santa Cruz counties.

The spread rose 9% during the course of marketing.

The year was marked by record North Atlantic storms, which put the loss tally more than 40% ahead of mild 2019 experience.

A total of 24 million hectares of land was burnt in the worst bushfire season on record.

The 12 Days of ILS Christmas

California blazes including the Glass Fire have driven up the estimate considerably since September.

Natural catastrophe losses were up 40% year-on-year to $76bn, 7% above the 10-year average.

The event is the most costly wildfire loss to hit New Zealand in recent times.

Books are scheduled to close on Monday, with final pricing being decided on Tuesday.

Nearly 80% of respondents said underwriting capacity decreased in the quarter.

Purchasing the analytics firm will help Willis meet growing demand for climate change services.

Over 10,000 structures have been destroyed in California alone, Aon said.

Several of the insurer's cat bonds have been heavily marked down in the secondary trading.

The deal would provide the corporation with California earthquake coverage.

The new issuance is thought to be the municipal utility’s first foray into the cat bond market

The company relies heavily on underwriting expertise to prepare for cat events.

Local reports suggest that utility Southern California Edison may be linked to the fire.

This is the first time the insurer has used the cat bond market since its Mariah Re cat bonds paid out after the record tornado season of 2011.

Kettle will operate as an MGA and “micro-reinsurer”, and sees itself as part of a new wave of InsurTechs.

The East Troublesome and Cameron Peak fires are two of the largest blazes in the state, with fears they could merge.

“Non-Covid” claims in the quarter also came in above average, with the Beirut blast its largest man-made loss.

The carrier's Hurricane Laura loss has risen close to its occurrence treaty trigger.

Sources estimate that 70%-85% of subrogation recoveries are already complete.

The NZ Super Fund is reviewing its portfolio in line with a revised climate strategy.

The 2020 figure tops the 1.96 million-acre high of 2018, when fires cost the industry around $18bn.

The fire is threatening 22,310 acres and has destroyed or damaged key wineries in Napa Valley.

Structures damaged or destroyed include the Meadowood Napa Valley resort and Medieval-style winery Castello di Amorosa.

The Glass Fire has destroyed the Chateau Boswell winery to the north of St Helena, California, CNN reported.

All three fires are prompting evacuation orders in Napa and Sonoma counties.

Total insured losses are well up on 2019, but the severity of individual blazes is not likely to impact reinsurers extensively.

The utility will draw down $843mn of its own insurance to help meet settlement costs related to the Thomas and Koenigstein fires, and the 2018 Montecito mudslides.

The vendor said about $3bn-$5bn of the loss total would come from Northern California, while between $1bn-$3bn would stem from Washington and Oregon.

The ratings agency says 2020 is already the third-highest year for California wildfire insured losses.

Meanwhile, in neighboring California, the largest wildfire, the August Complex, has burnt 755,603 acres of land.

The US National Weather Service issued a critical fire weather warning for parts of Idaho, Montana, California, Nevada and Oregon on Monday.

Record heat, dry conditions and strong winds have helped wildfires spread, Aon said.

In California, the August Complex in Tehama County has become the largest wildfire in the state’s history.

In Lane County, Oregon, more than 100 buildings have been lost in a forest fire that local officials warned is likely to have killed residents.

The figure tops the 2018 high and comes ahead of the peak fire period.

Subrogation recoveries from 2017-18 Californian wildfire losses drive capital releases.

Ricardo Lara’s office says it has received “numerous complaints” from policyholders about additional living expense payments being terminated.

An “excessive heat watch” is in effect for coastal, inland and foothill regions, Cal Fire has warned.

Cal Fire says the SCU blaze in southern California is also 60% contained.

Cal Fire says the blaze in central California has been 35% contained.

The reinsurance broker said mid-year excess capacity was at its lowest point since 2012.

The ratings agency predicts a potential retreat of certain E&S carriers.

The ratings agency says lockdown measures could pump up the repair bill.

The number of structures destroyed is closing in on levels recorded from some 2017-2018 fires.

The blaze in northern California has so far burnt more than 350,000 acres and is 22% contained.

President Trump releases federal aid for the fires, which include the third-largest blaze in California’s history.

Thousands have been forced to evacuate across northern and central California.

Evacuation orders are in place across northern California, including for the 120,000-strong city of Healdsburg near Santa Rosa.

Almost 350,000 acres burn in the Golden State as firefighters battle two major blazes west of Denver.

The state has been under a “historic lightning siege”, a CalFire spokesperson told a press conference Wednesday.

There are now 26 active incidents across the state due to heatwave conditions and sustained winds.

The Lake Fire is now 38% contained, though 4,570 structures remain under threat.

A fire tornado is formed when rising heat combines with turbulent wind conditions, creating towers of flame and ash.

The fire grew to 10,000 acres within the first two hours and now threatens around 5,420 structures.

Tornadoes, hail and strong winds hit the eastern half of the US last week.

Cedants faced a hard market in the mid-year renewals.

The estimated containment date for the fire is 17 August, according to the US Forest Service.

The blaze started on Friday and had spread to over 20,000 acres by Monday morning.

The California utility said it is still pursuing additional limit.

The utility spent 13% more to secure its insurance but cut back third-party cover to $870mn.

The utility company emerged from Chapter 11 earlier this month following an $11bn settlement with insurers.

The $50.25mn Randolph Re Series 2020-1 private cat bond will mature after one year.

The Calgary hailstorm in mid-June could become the fourth-costliest nat cat event in Canadian history.

The estimate marks a 19 percent deterioration on a February forecast.

The interim CEO said this marks a new era for the utility firm.

The deal settled at the low end of the revised spread guidance.

The firm has narrowed its price guidance range, suggesting a higher multiple.

Losses to the Res Re and Caelus ILS series have narrowed from prior investor expectations.

The utility expects to emerge from Chapter 11 in July after a bankruptcy court approves its settlement.

The deal will add to $125mn of ILS cover that the electricity provider has from an earlier transaction.

Earlier, the carrier added a pandemic exclusion to the annual aggregate bond.

This is the latest indication that reinsurers are standing their ground in the mid-year renewal.

The entity has told brokers that its “minimum standards” on all terms and conditions will include exclusions for these perils.

Property damage in eastern Australia totals $488mn, according to an initial loss estimate by Perils.

The California governor had opposed the package as he was concerned the company was taking on too much debt.

The ratings agency also said ILS capacity would ‘hold the line’ on returns following catastrophes.

Private ILS strategies largely escaped losses from the Australian wildfires, ILS Advisers said.

The fund helps compensate victims for losses from fires started by the utilities’ equipment.

The insurer lifted the attachment on an aggregate portion of its group reinsurance treaty, which was otherwise unchanged after its restructure for 2019.

Overall losses during the bushfire season total a record A$1.9bn.

The insurer is not looking to grow its net catastrophe portfolio this year, but thinks reinsurance rates will rise later in 2020 to support increased retro costs.

The Floridian carrier has returned to the cat bond market for a third time, adding wildfire, earthquake and winter storm perils to its latest transaction.

Losses of A$514mn and rising follow in the wake of costly bushfires.

The Insurance Council of Australia lifted its claims tally by 27 percent from its initial figure, with aggregate deductibles the main reinsurance exposure to the loss.

The storms will compound wildfire losses and put reinsurers on Suncorp's aggregate covers on watch.

Quota share and aggregate-property cat contracts are under watch as a result of the recent Australian bushfires but occurrence covers will probably remain mostly unscathed, sources expect.

The exposure to this transaction across private ILS strategies varies from 1.7 percent to 1.9 percent of November's portfolio, the manager said.

Claims from the catastrophe have increased to 13,750 up from 10,550 at the end of last week, the ICA told local media

As more claims emerge from the December-January fires, aggregate reinsurance contracts will be exposed to rising losses.

Natural hazard losses have put the carrier’s aggregate reinsurance covers closer to triggering.

The reinsurer pegged 2019 cat losses at $52bn, in line with long-term averages but 40 percent lower than 2018.

The bushfires have drawn attention to extended hours clauses that allow insurers to group together claims as a single event.

More claims are expected to be lodged in coming days and weeks.

The Australian insurance organisation put cumulative insured losses at A$431mn ($299.1mn) for the bushfire season.

The Australian carrier boosted its overall reinsurance cover but cut back aggregate protection.

More than 400 claims were lodged in the past day.

While temperatures hit 40c in every state and territory early this week, strong winds and lightning strikes in certain regions fed the flames.

The weather is expected to cool in the coming days but more high temperatures are due later in the week.

Damaging wildfires in recent years have made it more challenging for homeowners to find affordable insurance.

More than 830 homes and 62 facilities have been destroyed in NSW so far this fire season.

It also put an A$166mn tally on a November Queensland hailstorm.

The 2018 event cost insurers A$798mn, but storms and bushfires over the past month are not yet costly enough to be tracked by the agency.

A bankruptcy court judge approved the utility's planned settlements with insurers and victims yesterday.

The biggest risks still stem from natural catastrophes, finance and geopolitical issues.

California Governor Gavin Newsom told PG&E on Friday that the current deal fails to comply with state law.

In its latest update at 07:00 London time, New South Wales Rural Fire Service said there were two fires with an emergency warning.

The settlements must be approved by California’s governor as well as court judges to enable the utility to exit.

Approval of the settlement agreement puts PG&E on a path to emerge from Chapter 11 by 30 June, which is the deadline to participate in California’s wildfire fund.

An estimated 683 homes have now been burned as a result of the blazes.

The settlement with individual wildfire victims will ease the way for the payout of $11bn in insurance subrogation claims.

The Insurance Council of Australia has tracked A$110mn ($75mn) of bushfire losses as it declared the Sunshine Coast hailstorm a catastrophe.

The deal covered damage from the 2017 Thomas and Koenigstein fires and the 2018 Woolsey Fire.

The Insurance Council of Australia anticipates many more claims in the coming weeks.

More than 150 homes have been destroyed as fires blaze across New South Wales and Queensland, according to reports.

The New South Wales Rural Fire Service has forecast catastrophic fire conditions – the gravest possible forecast.

The class C notes are being offered with an initial guidance of 525-575 bps.

The Kincade Fire in Sonoma County, the Simi Fire in Ventura County and the Getty Fire on the outskirts of Los Angeles are almost extinguished.

As many as 374 structures had been destroyed, 60 had been damaged and 405 remained threatened.

It will be many months before the $11bn payout agreed between Pacific Gas and Electric Company (PG&E) filters through to the (re)insurance and ILS markets, with this lump sum likely to benefit some parties more than others.

Emergency services are attempting to stop one fire from spreading to valuable avocado and citrus orchards nearby.

CoreLogic exposure data suggested homes worth hundreds of millions were at risk.

Wildfire recoveries benefitted DaVinci investors and RenRe's retro partners in Q3.

At this stage, destroyed property numbers remain well below the thousands impacted in the major 2017-2018 fires.

Firefighters have made some progress containing the Tick Fire in Southern California, but high-value suburbs have been evacuated due to the Getty Fire.

Around 80,000 properties remain under threat from the fire, which is only 5 percent contained.

Thousands have been evacuated from their properties as wildfires break out in Sonoma County and Los Angeles County.

The significant pricing difference between the reinsurance and retrocession markets does not make a lot of sense, TigerRisk president Rob Bredahl said.

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.

The law creating the $21bn fund to be administered by the California Earthquake Authority was passed in July.

Since the 2017 and 2018 California wildfires reinsurers have become increasingly cautious of the risk, the rating agency said.

The fund now has £159.4mn allocated to ILS through Leadenhall Capital Partners.

The department said that the state’s special fund was not likely to have the resources to support spending on insurance.

Its parent career restarted writing business in Q2, assuming $1.1mn of premiums.

As interim administrator of the fund, the CEA will approve measures to sign up risk transfer services.

The California-based carrier raised its retention to $40mn, citing high rates.

The NAV per share has dropped by 2.6 percent since the turn of the year.

On sweltering weeks like this, you can see why climate change has become a talking point that every ILS manager has to cover in their pitch for new investor mandates.

The rate increases were less differentiated than the 1 June Florida rises.

The personal line carrier’s Camp Fire loss estimate is believed to have fallen from $1.8bn to $1.75bn.

The assembly’s governmental organisation committee voted unanimously to pass the bill, which would cover wildfire but not earthquake perils.

The proposed legislation would enable the state’s governor to tap the ILS market for coverage.

The 2018 notes were wiped out when the HCI-backed reinsurer Oxbridge was hit by $7.7mn of catastrophe losses.

The Californian utility company reached the agreement with 18 public entities after a series of wildfires between 2015 and 2018.

The model will also capture sub-perils including ground-shaking liquefaction, landslide, tsunami and fire following earthquakes.

The Toronto-based firm had already been collaborating with Perils for the past two years.

The legislation now passes to the state’s Assembly.

The bill still needs to pass two further Senate votes before heading to the state’s Assembly.

This will have implications for Allstate, State Farm, USAA and other insurers which have sued the utility over Camp Fire losses.

USAA is set to raise $135mn from the deal, which did not specify a target at launch.

The net asset value of the class C shares that included 2018 losses dropped by 35.74 percent by 31 December.

USAA had cat bonds impacted by the 2017 and 2018 catastrophe events.

Natural catastrophes account for $76bn of the total.

The Leadenhall Capital Partners CEO tells Trading Risk’s London ILS conference how he hopes changes in Lloyd’s will create further opportunities.

The sidecar’s main exposure is European wind risk.

The committee voted in favour of a new law that would see state funds used to buy cover for the costs of responding to a natural disaster.

The expected losses from the December hailstorm in Sydney have risen from A$871mn to A$1.2bn.

Cat bonds in future are likely to cover new perils, such as aviation hull, terror and cyber, JLT Re’s David Flandro said.

The New Mexico Educational Retirement Board pension fund invested in ILS via ILS Capital Management.

Some primary insurers are scaling back or withdrawing from offering Californian wildfire cover after two years of record losses, sister publication The Insurance Insider reported.

There is uncertainty around whether it will ultimately be the ILS market or the traditional reinsurance market that drives wildfire re-pricing, panellists said at the Sifma IRLS conference in Miami.

The sidecar’s cat claims came in just under the $323.7mn level recorded in 2017.

The utility’s total pre-tax charges for the 2018 Camp Fire and 2017 Northern California wildfires now stand at $14bn.

The past two years challenged the catastrophe (re)insurance market more than any period since the Hurricane Katrina era in 2004-2005 – but it is far from clear what the outcome will be this time around.

Losses from Hurricane Michael and the California wildfires brought the reinsurer’s non-life combined ratio up to 108.7 percent.

Anyone scanning the news stories we have covered in the past week might get a sense of déjà vu.

The legislation has been designed to help protect the state against the costs of natural disasters.

The insurer also dropped attachment points on its covers after cutting back its gross limits.

John Doucette, president and CEO of reinsurance at parent company Everest Re, said the company had shrunk its January catastrophe portfolio.

The insurer’s net Q4 2018 catastrophe losses ticked up by $6mn above initial estimates to $43mn.

Nephila quits AIG treaty; Sydney storm among top hail losses; Fema trims reinsurance; Leadenhall backs new insurer; Travelers buys $430mn aggregate; ILS growth; PG&E bankruptcy negative for insurers; $20bn ILS capital trapped: JLT Re

The loss tally for catastrophe bonds impacted by the 2017 disaster events has now climbed to $1.1bn, according to January pricing sheets.

Reinsurers said they were expecting more pressure on rates in the upcoming April and mid-year renewals during the early part of the fourth-quarter reporting season.

A diverse loss year produced steeper wildfire and typhoon losses than initially estimated.

The move has pared back the carrier’s aggregate losses, benefiting Caelus cat bond investors.

The carrier said its P&C reinsurance major-loss expenditure for Q4 was EUR886mn, almost double that of the prior-year quarter.

The beleaguered Californian utility’s innovative $200mn wildfire liability catastrophe bond cost the company $26.8mn.

Overall cat bond losses are in line with modelled expectations but more claims have come from non-core perils than expected, Lane Financial analysts suggested.

Kevin O’Donnell, CEO of the Bermuda-based company, said he expected reinsurance rates to rise in later 2019 renewals.

The total has risen 25 percent, or more than $2.3bn, since last month.

The utility estimates that its liabilities to insurers for wildfires could exceed $30bn.

The utility still faces investigation for this year’s Camp Fire.

USAA’s losses put it on track to recoup another $82mn from its cat bonds, following a projected $182mn recovery in 2017.

The fund incurred most of its losses in the fourth quarter.

In the US, renewal results varied widely and wildfire losses were a subject of focus.

The final couple of months of 2018 brought further pain for sidecar investors.

RenaissanceRe’s funds platform has taken significant losses.

It could take years to determine whether or not PG&E is responsible for the 2018 wildfires.

The crucial thing for the industry now is that the nuances of the lessons from 2017-2018 are heard.

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.

The insurer said the range is consistent with industry insured losses of up to $20bn from the recent blazes.

Hurricane Michael and the California wildfires have trapped a significant portion of retro capacity, the analysts said.

News of the steep C share loss follows the revelation of regulatory probes in the US and Bermuda.

The reinsurer’s Sigma report says just over half of economic losses were insured, as in 2017.

The insurer is understood to be exploring the possibility of claiming the Camp Fire as two separate events as it looks to maximise reinsurance recoveries.

The carrier’s $1.2bn gross loss from the two wildfires would trigger the carrier’s nationwide programme, which attaches above $500mn.

The vast bulk of the claims have come from the Camp Fire which has $7bn in insured losses to date.

The figure includes a $15-$19bn loss estimate from the recent Camp and Woolsey fires.

The losses relate to Hurricane Michael and the 2018 California wildfires, the Sompo International subsidiary said.

The Event-Linked Bond Fund’s net assets reached $373.2mn at 30 September, up from $259.5mn at the same point last year.

PCS has put out an initial $13.8bn combined loss figure for the Camp and Woolsey wildfires which tore through California in November, sources told Trading Risk.

Steep reserve deterioration may reduce confidence in the fund’s reserving process, Jefferies analyst said in a recent note.

This publication retraces the series of loss predictions made by the manager for its listed Reinsurance Opportunities Fund over the past year.

The retro market is likely to tighten at this year’s renewals as investors pause and reconsider their strategies following another year of substantial losses.

Insurers are seeking to claim roughly $10bn through subrogation lawsuits against Pacific Gas and Electric in relation to the 2017 wildfire losses.

Projected cat bond losses from the 2017 disasters have increased by just over 10 percent to $997mn.

Trading Risk view: investor fatigue

The firm’s 2017 portfolio loss has risen 15.7 percent to 57.1 percent.

Trapped capital will add to losses from Michael, Jebi and the wildfires.

The estimate puts the modelling firm’s combined November wildfire loss estimates at up to $13bn.

Beazley expects its (re)insurance losses from the recent Californian wildfires to amount to $40mn, it announced today.

The company may add to its existing catastrophe and US commercial reinsurance programmes.

The insurer’s general insurance CEO said shortages of retro capacity will drive rate change.

The insurer expects $1.8bn of losses from the Camp Fire and $475mn from the smaller Woolsey Fire.

The insurer's Michael losses are set to come in at the higher end of its $150mn-$250mn estimated range.

Woolsey was one of two highly destructive wildfires in California last month.

The estimate is in line with modelled loss estimates.

Bushfires have led to evacuations in the north of the country while Sydney has been hit by heavy rainfall.

The Everest Re sidecar will have less capacity in 2019, the reinsurer has told brokers.

The insurer forecast gross losses of $207mn from the Camp Fire and $46mn from Woolsey.

It estimated that damage from the Woolsey and Camp Fires in California will be worth between $15bn and $19bn.

The Woolsey Fire near Los Angeles has now been completely extinguished.

The retro manager also warned 2018 wildfire losses could exceed those of last year.

Sources suggested that average payouts would be well above face values of properties.

The insurer is expected to make significant recoveries from its aggregate cat bonds for the second year running.

Heavy rain is forecast to drench the areas affected by the wildfires Northern California on Tuesday evening local time.

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.

The power utility has cover for any wildfires caused by its infrastructure.

Third quarter cat bond issuances increase.

AIR’s Brent Poliquin says ILS model users are getting to grips with more detail.

The wildfire in Butte County has led to widespread evacuations.

The $125mn cat bond remained unchanged in size, as pricing settled at the midpoint of the initial range.

The adjustments, which include extending claims deadlines and broadening loss categorisation, could lead to increases in carrier costs.

Utilities company Sempra Energy has become the second sponsor to bring a wildfire cat bond to the ILS market, with the launch of the $125mn SD Re.

Insured residential and commercial losses for the two fires which hit California in July and August have climbed to $845mn.

California has suffered another record-breaking wildfire season but the impact on the ILS market is likely to be marginal, sources have said.

Three-year returns from the London-listed Reinsurance Opportunities fund run by Markel Catco dipped below a level that could have triggered a continuation vote being put to shareholders in 2018.

The Swedish insurers’ association Svensk Forsakring has estimated the fires that swept through Swedish forests from May to July will lead to insured losses of SEK800mn ($87mn).

The latest version includes data from the 2017 Tubbs, Atlas and Thomas fires in California.

July catastrophe losses have been dominated by Californian wildfires.

Pricing for the Cal Phoenix Re cat bond has settled 20 percent above the initial guidance at 750 basis points.

The ratings agency says insurers may need to pursue loss-reduction strategies, with 2018 possibly on track to produce more claims than 2017.

The Mendocino wildfire, which is currently tearing across North California, nearly doubled in size over the weekend to become the fourth largest in state history.

As of yesterday evening, the fire in Northern California was only 37 percent contained.

The Carr fire is 30 percent contained but it continues to rage across 112,888 acres.

The blaze in Northern California covering 103,772 acres has destroyed 818 residential and three commercial structures so far.

The target spread on the first wildfire cat bond has risen from an initial guidance of 600-650 basis points (bps) to 750 bps.

The California Department of Forestry and Fire Protection said as of yesterday the blaze was only 17 percent contained.

The energy provider is hoping to raise $200mn for the Cal Phoenix Re 2018-1 cat bond which will solely cover wildfire losses.

Insured losses are set to top $100mn after flash floods in Iowa, Pennsylvania and Texas.

QBE Re has appointed Stephen Postlewhite, the former CEO of Aspen’s primary insurance business, as its deputy global chief underwriting officer.

The retro manager's Irma loss deterioration is on a higher scale than that reported by peers.

The month brought nearly 70 tornadoes, Aon Benfield's Impact Forecasting said.

Lancashire's $500mn sidecar took a loss in Q1 but grew its premium base by a third.

ILS funds averaged a loss of 0.24 percent in March as 2017 events deteriorated.

The latest PCS loss number for Hurricane Harvey has edged up to $17.1bn, from a prior figure of $15.7bn, sources told Trading Risk.

Earlier this year, while reinsurance risk-takers were being buffeted by winter storm losses and rising wildfire and hurricane claims, another niche corner of the financial markets was experiencing its own "vol-mageddon".

Aspen Bermuda has launched a $150mn cat bond Kendall Re 2018-1 which will provide it with annual aggregate county-weighted cover for US multi-peril risk as well as protection against European storm risk.

Chubb reported net pre-tax catastrophe losses of $380mn for the first quarter, which included $125mn from the mudslides that hit Southern California in January.

Two tranches of Nationwide Mutual's Caelus cat bonds are expected to be nearly wiped out by 2017-18 losses, following an investor update which put the insurer's Winter Storm Riley claims at $90mn-$130mn, Trading Risk can reveal.

PCS has released an initial loss figure for Winter Storm Riley of $1.36bn, according to sources.

Several low-lying aggregate tranches of Residential Re cat bonds are expected to pay out to USAA after the insurer's winter storm losses took its annual covered losses to $1.03bn, Trading Risk understands.

Over 30 000 residents have been told to evacuate Santa Barbara county in southern California, as weather watchers issue flood and mudslide warnings.

A 20 percent increase in industry loss estimates for last year's hurricanes and wildfires could see 2017 returns for Markel Catco's London-listed Reinsurance Opportunities Fund drop by a further 8 percent, the retro manager has disclosed.