Residential Reinsurance 2000 Ltd.
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Residential Reinsurance 2000 Ltd. - At a glance:
- Issuer / SPV: Residential Reinsurance 2000 Ltd.
- Cedent / Sponsor: USAA
- Placement / structuring agent/s: Goldman Sachs structured the securities and co-underwrote them with Lehman Brothers Inc., Merrill Lynch & Co. & Pierce, Fenner & Smith Inc.
- Risk modelling / calculation agents etc: AIR Worldwide
- Risks / Perils covered: U.S. hurricane
- Size: $200m
- Trigger type: Indemnity
- Ratings: S&P: 'BB+'
- Date of issue: Jun 2000
Residential Reinsurance 2000 Ltd. - Full details
As part of its reinsurance efforts, USAA purchased a mix of capital-market reinsurance acquired from Residential Reinsurance 2000 Limited and reinsurance from the Florida Hurricane Catastrophe Fund.
An important piece of the USAA reinsurance program is the capital-market reinsurance acquired from Residential Reinsurance 2000 Limited on June 1. In that transaction, Residential Reinsurance 2000 Limited completed the sale of $200 million of privately placed catastrophe bonds. The proceeds of that sale are held in trust to pay USAA claims should an event produce losses in excess of $1.1 billion arising from a category 3 or higher hurricane striking anywhere in 20 Eastern states or the District of Colombia.
The notes have been rated ‘BB+’ by Standard & Poor’s.
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