Following the mid-year reinsurance renewals the California Earthquake Authority (CEA) now sees catastrophe bonds making up an even larger proportion of its more than $7.83 billion risk transfer tower, at over 33% of the limit provided.
The earthquake insurer had shrunk its overall reinsurance tower through the last couple of years, but at the same time maintained and now recently increased its reliance on catastrophe bonds.
When we last reported on the CEA’s risk transfer tower, the organisation had renewed slightly more reinsurance protection at April 1st than matured, leaving it with almost $7.8 billion of risk transfer in-force.
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