Espada Reinsurance Limited (Series 2016-1)

U.S. military mutual insurer USAA’s new catastrophe bond, the Espada Reinsurance Limited (Series 2016-1) transaction, is set to complete at the lower end of the insurers volume ambitions, securing just $50m of reinsurance, while the pricing has been set at the top-end of guidance.

U.S. military mutual insurer USAA has returned to the catastrophe bond market with a new issuance vehicle and different approach, as it seeks a source of broad multi-year and peril reinsurance protection from the capital markets through an Espada Reinsurance Limited (Series 2016-1) transaction.