LADWP structures wildfire parametric catastrophe bond with Aon

Buyer: Los Angeles Department of Water and Power (LADWP)

Awardee

Aon

Details

As part of its wildfire mitigation plan, the publicly owned utility developed with broker Aon a parametric wildfire catastrophe bond that pays out on a location-based wildfire trigger rather than proven losses, described as a first-of-its-kind structure for a US municipal utility.

Power Protective Re Ltd. Series 2020-1 ($50M, parametric) matured 8 December 2023. LADWP has renewed continuously since: Power Protective Re Series 2021-1 ($30M, indemnity trigger), then 123 Lights Re Ltd. Series 2025-1 ($100M, county-weighted industry loss index) and Series 2026-1 ($100M, roughly three years to August 2029). Aon remains the structuring agent via a White Rock cell captive, with Hannover Re as reinsurance intermediary.

Source

Official solicitation / award →