State Farm
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State Farm General has asked California regulators for an emergency rate increase. -
The carrier has paid $1.75bn on around 9,500 claims filed from the wildfires.
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The insurer disclosed the estimates as it seeks emergency rate hikes from regulators.
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The company says the recent wildfires will be the costliest in its history.
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A negative January return will be unprecedented for ILS industry.
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The sponsor was targeting between $850mn-$1.1bn of coverage in the latest mega-bond to hit the ILS market.
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The deal will expand the region and perils covered by Merna Re bonds.
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The carrier currently has $1.15bn of Merna Re cat bond limit on risk.
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Carriers have been dealing with elevated storm activity this year, whilst additional purchases to match inflating values had largely been parked in 2023.
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The company wrote the most California homeowners multi-peril insurance, at $2.56bn, and fire lines and home multi-peril insurance, at $2.66bn, in 2022, according to AM Best data.
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The new issuances will add to the carrier’s existing $900mn cat bond cover.
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The carrier expects to retain about $346mn, net of reinsurance reimbursements.
