Over the last year the California Earthquake Authority (CEA) has benefited from strong execution in the catastrophe bond market to lower both its reinsurance attachment point and costs associated with risk transfer.
With now three catastrophe bonds sponsored so far in 2025, the California Earthquake Authority (CEA) has steadily increased the capital markets share of its overall reinsurance tower arrangements.
While price execution in the cat bond market, thanks to what are now dramatically reduced spreads over its cat bonds issued through the last year, have assisted. Notably, it is also cat bonds that have helped the earthquake insurer shave $400 million of the attachment point for its reinsurance protection.
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