SEMPRA ENERGY’S SD RE WILDFIRE CAT BOND TO UPSIZE BY 20%

California utility Sempra Energy intends to upsize its SD Re Ltd (Series 2020-1) catastrophe bond to $90m from the initially marketed size of $75m owing to investor demand, Artemis.bm has reported. The deal is designed to provide Sempra and its subsidiaries with protection against losses from third-party property claims arising from California wildfires that have been sparked by its facilities or infrastructure. Proceeds from the sale of the single tranche of notes will collateralise SD Re’s retrocessional reinsurance deal with Hannover Re, who will in turn provide reinsurance to a unit of Energy Insurance Mutual, where Sempra is a member company. The notes will cover a $100m layer of Sempra’s insurance tower and attach at $1bn in losses.