Edison International

“SCE has disclosed that it is probable that SCE will incur material losses from the Eaton fire and entered into a negotiated agreement without litigation with one insurance company to pay 52% of the losses incurred.”

Mercury is pursuing subrogation against Southern California Edison (Edison International) over the Eaton fire; SCE has acknowledged probable material losses, a negative read-through for Edison's wildfire liability.

“The Company is actively pursuing subrogation against Southern California Edison on the Eaton fire. The Company recorded approximately $527 million in estimated subrogation recoveries, or approximately 55% of its estimated ultimate losses on the Eaton fire. SCE has not admitted that its equipment caused the Eaton fire, but significant evidence indicates that SCE's equipment was the cause. SCE has disclosed that it is probable that SCE will incur material losses from the Eaton fire and entered into a negotiated agreement without litigation with one insurance company to pay 52% of the losses incurred.”

Mercury is pursuing subrogation against Southern California Edison (a subsidiary of Edison International) over the Eaton fire, and states it is probable SCE will incur material losses and has agreed to pay 52% of losses to one insurer, a negative read-through for EIX's wildfire liability.

“The Company is actively pursuing subrogation against Southern California Edison on the Eaton fire. The Company recorded approximately $528 million in estimated subrogation recoveries, or approximately 55% of its estimated ultimate losses on the Eaton fire.”

Mercury General is pursuing subrogation recoveries from Southern California Edison (Edison International), alleging SCE's equipment caused the Eaton wildfire, implying material liability exposure for the utility.

“Edison had an ALJ proposed decision that had recommended lower wildfire mitigation CapEx. I was just wondering if you think that has any read across to you with your GRC?”

An ALJ proposed decision recommended lower wildfire-mitigation capex for Southern California Edison, a potential negative regulatory signal for Edison International's rate base growth, prompting analyst questions about read-through to PG&E's own general rate case.

“The Edison International is pretty much acknowledging that they're going to have some capability in the event of the Eaton Fire.”

Edison International's acknowledged liability exposure for the Eaton Fire is a source of potential subrogation recoveries for Everest, whose reinsurance book absorbed the bulk of the California wildfire losses this quarter.

“The Company is actively pursuing subrogation against Southern California Edison on the Eaton fire. The Company recorded approximately $525 million in estimated subrogation recoveries, or approximately 55% of its estimated ultimate losses on the Eaton fire, as an offset against loss and loss adjustment expense reserves.”

Mercury General is pursuing a ~$525M subrogation claim against Edison International's utility subsidiary SCE, alleging its equipment caused the Eaton wildfire — a liability exposure for Edison tied to the January 2025 California wildfires.

“If anybody doesn’t believe that, they can look at Hawaiian Electric and look at Edison in the current wildfires situation in California.”

Buffett points to Edison's wildfire-liability troubles in California as evidence of a broader societal trend that has reduced the value of public utility investments like Berkshire Hathaway Energy.

“While S&P downgraded EIX and SCE by 1 notch, we believe this view does not fully recognize the legislative intent or commentary from the Governor's office.”

S&P downgraded Edison International and SCE by one notch; management disputes the view but it is a negative credit-rating action.

“Fitch removed its rating watch negative from both companies, citing SB 254 as a meaningful policy shift.”

Fitch removed its rating watch negative on Edison International and SCE, citing California wildfire legislation SB 254 as a meaningful policy shift.

“Moody's affirmed its ratings for both EIX and SCE with a stable outlook.”