Two occurrence cat bonds believed affected by LA wildfires: Twelve Capital

Specialist insurance-linked securities (ILS) manager Twelve Capital has said that it believes two per-occurrence catastrophe bond structures are likely affected by the loss impact of the Los Angeles, California wildfires at this stage, while the impact of aggregate erosion for other cat bonds is still being assessed.

Twelve Capital bases its latest assessment on the current industry loss estimate range from the four leading catastrophe risk modelling firms, which spans from $20 billion to as high as $45 billion.

As we’ve said, the mid-point average across the cat modeller estimates sits at $31.125 billion.

In its latest update on the LA wildfires, Twelve Capital reports that still the majority of losses are likely to be absorbed by primary insurers and junior reinsurance layers.

FULL ORIGINAL PUBLICATION HERE

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