Swiss Re Insurance-Linked Fund Management

Xactanalysis Insights and PCS

Residential Reinsurance 2008 Ltd.

The Artemis Catastrophe Bond and Insurance-linked Securities Deal Directory aims to provide a one-stop resource for information on every cat bond and ILS transaction we hold information on. The content of this Deal Directory is provided as is and there will be some omissions. Help us to keep these cat bond and ILS transaction summaries up to date by contacting us if you see an error or omission that you can correct.


Residential Reinsurance 2008 Ltd. – At a glance:

  • Issuer: Residential Reinsurance 2008 Ltd.
  • Cedent / sponsor: USAA
  • Placement / structuring agent/s: Goldman Sachs and Lehman Brothers co-managed the deal
  • Risk modelling / calculation agents etc: ?
  • Risks / perils covered: U.S. hurricane, U.S. earthquake, U.S. severe thunderstorm, U.S. winter storm, U.S. wildfire
  • Size: $350m
  • Trigger type: Indemnity
  • Ratings: S&P: Class 1 - 'BB', Class 2 - 'B', Class 4 - 'BB+'
  • Date of issue: May 2008

Residential Reinsurance 2008 Ltd. – Full details:

The 12th in the long standing Residential Reinsurance series of catastrophe bond securitizations from personal lines insurer USAA.

This 2008 issue allows USAA to diversify its exposure to different weather perils and natural disasters along the coastal states, California and Hawaii.

A spokesperson for USAA, said they managed to obtain more coverage at a lower price this year. The notes were issued in three tranches: The Class 1 at $125m at a reduced price of 675 basis points or 6.75% (it was originally structured as $100m at 700 basis points).

Class 2; $124m at a reduced price of 1150 basis points (originally structured at $100m at 1175 basis points). Class 4 deal ended at $100m at 525 basis points. Class 4 includes additional perils, namely California wildfire, winterstorm, and severe thunderstorms.

The cat bond has an indemnity based trigger, with payout based on actual losses.

This years issue seems to be a very economical way for USAA to receive a large amount of coverage.

Register today for ILS NYC 2023, our next insurance-linked securities (ILS) market conference. Held in New York City, February 10th, 2023.

Artemis London 2022 - Insurance-linked securities conference in London

Get a ticket soon to ensure you can attend. Secure your place at the event here!

Print Friendly, PDF & Email

« Go back to the Catastrophe Bond Deal Directory

Help us keep this valuable resource up to date. If you have information on a catastrophe bond or insurance-linked security deal we have not covered or can see something that we should change, please contact us to let us know.