LONDON, (Reuters) – The California Earthquake Authority is seeking to raise about $150 million through a sale of catastrophe bonds to help it meet potential claims, market sources said on Friday.
The bonds are to be sold through the CEA's Bermuda-based Embarcadero Re vehicle, and offer protection against property damage in the event of a Californian earthquake, the sources said.
The CEA, publicly managed but privately funded, was set up to insure California homeowners against earthquake damage after the 1994 Northridge tremor prompted many commercial insurers to withdraw from the market.
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