CEA’s risk transfer tower expands to $7.8bn following April reinsurance renewal

As of April 2025, the California Earthquake Authority’s (CEA) risk transfer tower has grown to approximately $7.8 billion in total in-force coverage, following the successful renewal of additional reinsurance protection.

According to the CEA’s latest disclosure, the organisation renewed $1.2 billion in reinsurance limit during the April renewal cycle.

This brought its combined traditional, collateralised, and fronted reinsurance coverage to just over $5.34 billion, an increase from nearly $5.27 billion in February 2025. Meanwhile, the catastrophe bond portion of the CEA’s risk transfer program remained unchanged at $2.455 billion.

With this in mind, the total risk transfer tower as of April 2025 was $7.8 billion, up from $7.72 billion as of February 2025.

As noted by our sister publication, Artemis, the catastrophe bond component of the CEA’s risk transfer tower was approximately 31.5% in April, just slightly down from the almost 32% as of late February.

Readers may recall, earlier this year, the CEA’s risk transfer tower had experienced a contraction during the January 1st, 2025, reinsurance renewals.

At that time, the CEA secured just over $2.15 billion in traditional reinsurance limit, falling short of the $2.48 billion in single and multi-year contracts that expired at the end of 2024.

This led to a reduction in the risk transfer portion of the Authority’s overall claim-paying capacity.

Including the in-force contracts that remained active, the traditional reinsurance component stood at just over $5.39 billion as of the end of January 2025, while the catastrophe bond portion stood at $2.455 billion.

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