The California Earthquake Authority’s (CEA) reinsurance program grew slightly to include limit of $7.912 billion at the end of 2025, while the catastrophe bond market was providing its largest share of the risk transfer tower ever, at 36% of total limit.
In recent year’s, the California Earthquake Authority’s (CEA) need for risk transfer, which it procures from the traditional and collateralized reinsurance market, as well as through its catastrophe bonds, had declined as its overall exposure base shrank.
But, in 2025, the CEA’s in-force exposure increased again, rising from almost $641 billion at the end of 2024, to over $653 billion by the end of 2025. That is still lower than it was at the end of 2023, but a notable uptick.
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