Swiss Re Insurance-Linked Fund Management

PCS - Emerging Risks, New Opportunities

Latest Residential Reinsurance 2010 cat bond issuance upsizes at close to $300m


USAA’s latest catastrophe bond issuance, a second series of notes under it’s Cayman Islands based SPV Residential Reinsurance 2010 Ltd., has now closed. The transaction upsized by $100m before close and in total provides USAA with another $300m of multi-peril cat bond cover.

Only one tranche of this new Series 2010-II issuance has been rated by Standard & Poor’s. The $210m Class 1 Series 2010-II notes (which upsized from the originally marketed $110m) have been rated ‘BB’ by S&P. The other two tranches of notes have not been rated but are comprised of $50m Class 2 Series 2010-II notes and $40m Class 3 Series 2010-II notes.

The deal provides USAA with two and a half years cover against hurricane, earthquake, severe thunderstorm, winter storm and wildfire exposures in the U.S. The deal is due to mature in June 2013.

It’s encouraging to see that a deal involving U.S. wind risks has seen enough demand to upsize significantly. This should encourage other sponsors for any forthcoming issuances.

For full details of this issuance, which follows the same structure as the first Residential Re 2010 cat bond, see our Deal Directory.

Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.

Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.