State Farm
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The new issuances will add to the carrier’s existing $900mn cat bond cover. -
The carrier expects to retain about $346mn, net of reinsurance reimbursements.
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State Farm policies in question contain a virus exclusion, protecting the insurer from liability.
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Nationwide, USAA and Allstate are other national carriers with significant property catastrophe market shares in the states.
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This will have implications for Allstate, State Farm, USAA and other insurers which have sued the utility over Camp Fire losses.
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The placement should keep the insurer’s bond total at $900mn.
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The utility expects to source enough cash to finance its ongoing operations.
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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.
