Residential Reinsurance 2026 Limited (Series 2026-1) – Full details:
USAA is back in the catastrophe bond market with an initial target to secure $600 million or more in fully-collateralized reinsurance protection from what will be the 47th catastrophe bond transaction we have tracked from the military mutual insurer, the most prolific sponsor in the cat bond sector.
Notably, at a $600 million start this already equals USAA’s largest single cat bond sponsorship, so could easily become its largest yet.
Also notable is the fact that USAA has tended to sponsor two catastrophe bond deals each year, one cat bond that provides the insurer with aggregate reinsurance protection around May, and a cat bond to provide per-occurrence coverage around November.
In this case, while this is the May issuance, there are two tranches to provide aggregate cover across the United States, but an additional one that will provide occurrence cover just for the state of Florida.
We believe this could be the first Florida only cat bond tranche ever sponsored by USAA, although historical data is less available on older deals the insurer had sponsored, so it’s impossible to be certain.
Details to follow…
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