Mercury General Corporation said it expects losses from wildfires burning in California since Jan. 7 to exceed its $150 million reinsurance retention, without providing a specific dollar estimate of losses the company expects to incur.
The first publicly traded U.S. insurer to provide any wildfire updates on Jan. 10, the Los Angeles-based carrier, which is focused on home and personal auto insurance, reported that the limit of its reinsurance program, written on a per-occurrence basis, is nearly $1.3 billion.
But are the wildfire events one occurrence for the purposes of reinsurance?
The language of the