Insurers’ exposure to PG&E wildfire liability appears limited: Best

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The property/casualty insurance sector has limited exposure to the debt of troubled California utility PG&E Corp., according to a briefing released Wednesday by A.M. Best Co. Inc.
Approximately 10% of the insurance companies are exposed to PG & E bonds by the number of organizations.

On the other hand, the property / loss segment holds only 10% of all businesses in the sector; Best said that two-thirds of these assets have risks of less than 1% of total capital and surplus.

In total, the insurance sector accounts for about one-fifth to one-fourth of the company’s debt or approximately $ 4.1 billion.

PG & E faces questions of responsibility for California forest fires linked to distribution lines, and said Best’s market value is “about half a year worth about $ 12 billion in just over a week.”

”The issue is whether companies should continue to be held liable for damages from forest fires due to electricity lines, even if they do nothing wrong,“ he said.

Ediy Lobbying continues to support the call for the governor’s call to loosen the standard of obligations officially known as vermek reverse-court conditional ım to allow a fairer share of cost between institutions and insurance companies.

According to Sridhar Manyem, director of industry research and analytics for Best in Oldwick, New Jersey, property / casualty exposure does not rise to the material level.

Ine This is definitely not a financial risk, ”Mr. ”We don’t see any property / casualties that focus on PG & E debt.“

Although responsibility issues arise in reality, Mr. . The events are at very early stages, Many notes Magnus. Iyor Too many speculations continue, “he adds.

However, the chairman of the California Public Services Commission has called to extend an existing investigation to PG and E and has gained a potential political dimension to the issue.

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