The California Earthquake Authority (CEA) today said it has completed a first-of-its-kind transaction that opens a more direct path to transfer the financial risk posed by earthquakes. The transaction allows CEA to obtain reinsurance from the capital markets rather than solely from reinsurers. The initial $150 million, three-year deal – the first earthquake-only catastrophe bond issued without involvement of traditional reinsurers – is intended to be a benchmark establishing a more efficient, lower-cost market for similar follow-on deals by CEA, while expanding the sources and amount of claim-paying capacity available to the CEA. …