(Bloomberg) -- Coverage insurers have limited exposure to PG&E Corp. bonds through their investment portfolios, Goldman Sachs analyst Yaron wrote in a note earlier after the California utility said Monday it intendsto file for bankruptcy later this month. Shares of the utility were down 18 percent as of 11:33 a.m. in New York after its volatility halt, adding to its losses of more than 52 percent Monday.
American International Group Inc. and Allstate Corp. have greatest exposure to PG&E bonds though their investment portfolios at about 50 basis points of “statutory surplus,” according to Kinar. Other insurers that have exposure to PG&E bonds include Travelers Companies Inc., Hartford Financial Services Group, Arch Capital Group Ltd. and Chubb Ltd.
Property & casualty insurer reserves don’t expect recoveries/subrogation from PG&E even though several insurers filed suits against the utility, asserting that PG&E is liable for the wildfires. Goldman sees limited downside to insurers it follows through the liability side of their balance sheet if the utility is unable to pay insured loses