The Los Angeles Department of Water and Power (LADWP) is returning to the catastrophe bond market for the third time, aiming to raise up to $150 million through a new issuance with 123 Lights Re Ltd. This follow-up to prior catastrophe bonds, which secured $50 million in 2020 and $30 million in 2021, seeks wildfire protection with a new county-weighted industry loss index trigger. The LADWP’s infrastructure is exposed to wildfire risks, necessitating this coverage. The latest bond, targeting a three-year term until August 2028, will be supported by Hannover Re and Aon’s White Rock captive cell. This approach aligns with LADWP’s regional risk exposure and aims to provide targeted protection while maintaining engagement with the catastrophe bond market for wildfire risks.
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