Wildfire

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.