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.