Wildfire
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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.
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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.
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The fires are being fanned by winds of up to 115mph around the towns of Superior and Louisville.
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The carrier's first cat bond featured a new subrogation extension mechanism.
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Pricing was generally stable but investors are showing more aversion to specific climate-exposed perils, sources noted.
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It had previously sought $100mn.
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The move comes amid limited availability of annual aggregate cover.
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The catastrophe bond offers an increased spread compared to initial guidance.
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The target spread has gone up 4% on the high-risk aggregate deal.
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The catastrophe bond will take the firm’s cover to $250mn.
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The final amount has upsized from the previous $100mn target.
