Pacific Gas & Electric Co.'s bankruptcy is likely to result in significant losses and receivables on special insurance companies operating in the user sector, credit rating agency A.M. Best said Friday in a report.
Losses from direct fire damages and directors and officials responsible for the San Francisco-based PG & E bankruptcy will be recognized by a number of special insurance companies, Best Reported.
But "special insurance companies with exposure to PG & E have a limited risk appetite and have sublimits in place that can help limit the risk of volatility arising from these exposures," Best said. "
" Because these companies are well capitalized may they absorb several losses, "Best of all in the report, to add it does not expect any impact on these insurers' credit ratings.
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PG&E D & O Liability Insurance Company, by the Courts, includes ACE American Insurance Co., Allianz global risks; Argonaut Insurance Co.; Industry insurance company Associated Electric & Gas Insurance Services Ltd based in East Rutherford, New Jersey and Tampa, Florida-based Energy Insurance Mutual Ltd., of which PG & E is a member; Berkeley Insurance Co.; Endurance Risk Solutions Assurance Co.; Houston Casualty Co.; North American Special Insurance Co.; Starr Damage & Liability Co.; Twin City Fire Insurance Co., as well as Lloyd's Barbican, Hiscox (Alpha) and Munich Re at Lloyd's syndicate.
As previously reported in addition to the PG & E Guarantee for $ 1.4 billion $ 200 million disaster band and has a detention via Energy Insurance Services Inc., a unit of Energy Insurance Mutual Ltd., court records.
PG & E faces trials from property owners and some insurers claiming that poor maintenance of their transmission lines caused fires.
The insurance companies have brought $ 17 billion of claims against the tool in connection with property losses from fires, according to PG & E filing. PG & E estimates its debts to insurance companies and victims of fires may exceed $ 30 billion, not including penalties.