Residential Reinsurance 2021 Ltd. (Series 2021-1)

Insurer USAA is set to return a further $25 million of catastrophe bond capital to investors from the extended notes of its Residential Reinsurance 2021 Limited (Series 2021-1) aggregate cat bond, presumably as loss development has continued to be more favourable under the coverage provided, this publication has learned.

Insurer USAA has extended the maturity for $225 million of catastrophe bond notes issued under its originally $400 million Residential Reinsurance 2021 Limited (Series 2021-1) aggregate cat bond issuance, allowing for further development of losses to identify if any reinsurance recoveries become due.

A number of USAA’s aggregate catastrophe bond tranches issued under its Residential Re program of deals have seen their secondary market prices marked repeatedly lower over recent months, with its losses from a severe convective storm (SCS) outbreak now driving them further down with some tranches marked near zero.

U.S. primary mutual insurance company USAA has seen its latest catastrophe bond, the upsized $400 million Residential Reinsurance 2021 Limited (Series 2021-1) transaction, price far below guidance in the latest sign of elevated cat bond investor demand.

USAA, the U.S. primary mutual insurance company, is now set to secure an upsized $400 million of multi-year, fully collateralized, multi-peril aggregate reinsurance from the capital markets with its latest Residential Reinsurance 2021 Limited (Series 2021-1) cat bond deal.

USAA, the U.S. primary mutual insurance company, is back in the catastrophe bond market for yet another transaction, as it looks to secure $275 million or more of multi-year, fully collateralized, multi-peril aggregate reinsurance from the capital markets with a Residential Reinsurance 2021 Limited (Series 2021-1) deal.