Standard & Poor’s have rated the notes of USAA’s planned catastrophe bond, Residential Re 2009. The tranches of the $150m deal, split into three of $50m each, have been rated ‘BB-‘, ‘B-‘ and ‘BB-‘ respectively.
Further details of this deal have come to light through the S&P presale report. The deal will cover USAA and certain subsidiaries only for events which have a minimum loss of $35m to USAA. The perils covered are U.S. hurricanes, earthquakes, severe thunderstorms, winter storms and also wildfires in California. The agreement will only cover losses with respect to homeowners, dwelling, condominium owners, and renters policies, together with a factor applied to account for pleasure boat and inland marine floater policies.
You can read all about this deal and all other cat bonds issued this year in the Artemis Deal Directory.
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