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Financials Acquisitions Corp is looking to extend its merger deadline and raise “substantial” extra funds.

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

The carrier is increasing underlying rates to counter increased reinsurance costs and inflation.

Previously, Shaw was lead underwriter at MS Reinsurance and lead underwriter at MS Amlin’s Bermuda office.

ACIC’s program offers sufficient coverage for approximately a one-in-167-year event and a one-in-100-year event followed by a one-in-50-year event in the same season, the company said.

Howden Tiger worked on the structure of the deal with the unnamed syndicate.

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.

The Bermudian reinsurer launched a public offering of 6,300,000 common shares and anticipates raising around $1.15bn to finance the transaction.

The deal includes AIG's AlphaCat platform.

The reinsurer has cat capacity available at 1.6 and 1.7 where pricing meets its margin targets.

This comes as the reinsurer is preparing a major equity raise to attack the harder reinsurance market.

Net proceeds will be used for general corporate purposes, which may include expanding its existing business lines and operations.