trending Market Intelligence /marketintelligence/en/news-insights/trending/vechpqefperp32z_s93guq2 content esgSubNav
In This List

Report: Sempra-sponsored California wildfire cat bond launches


Insight Weekly: US stock performance; banks' M&A risk; COVID-19 vaccine makers' earnings


S&P Capital IQ Pro | Powered by Expert Insights


Insight Weekly: LNG exports surge; investors unfazed by inflation; neobanks drive VC funding

451 Research Podcast

Next in Tech | Episode 41: IoT's Role in Energy and Utilities

Report: Sempra-sponsored California wildfire cat bond launches

Sempra Energy is sponsoring SD Re Ltd. series 2018-1, a $125 million California wildfire catastrophe bond, Artemis reported.

The transaction would provide Sempra with three-year coverage against losses from wildfires in the state caused by its own infrastructure or facilities.

The catastrophe bond comes with an indemnity trigger arrangement and will cover losses of up to $1.47 billion. It also includes a $50 million franchise deductible per event.

The transaction will have an initial attachment point of approximately $1.33 billion. The notes are expected to have a modeled initial attachment probability of 0.21% and an initial expected loss of 0.21%. The notes reportedly have a coupon pricing guidance of 3.5% to 4.5%.

Proceeds will be used to finance the three-year reinsurance agreement with Hannover Re, which serves as the ceding reinsurance firm.