Residential Reinsurance 2024 Ltd

USAA is adding a retained quota share layer to the stated reinsurance for some of its annual aggregate Residential Re catastrophe bonds for their next loss occurrence period, after an update to the risk model used drove a material increase to the expected loss contribution of the severe thunderstorm peril, Artemis has learned.

Insurer USAA has now secured the upsized target of $450 million of multi-peril catastrophe reinsurance from its new Residential Reinsurance 2024 Limited (Series 2024-2) catastrophe bond, while the three tranches of notes have all been priced at the bottom-end of their reduced guidance ranges, Artemis can report.

We’ve learned that insurer USAA is aiming to upsize its latest catastrophe bond to provide $450 million of occurrence reinsurance protection, up from the initial $325 million target, while at the same time the price guidance for notes from this new Residential Reinsurance 2024 Limited (Series 2024-2) deal has tumbled.

Insurer USAA has returned for what will be the 44th catastrophe bond issuance we have tracked from the company, initially targeting $325 million of occurrence reinsurance protection from a new Residential Reinsurance 2024 Limited (Series 2024-2) deal, Artemis has learned.

USAA has now successfully priced its latest catastrophe bond to secure it a reduced amount of protection after one tranche of notes from the Residential Reinsurance 2024 Limited (Series 2024-1) issuance were dropped, with the remaining two multi-year tranches now finalised and set to provide it with $125 million of annual aggregate multi-peril reinsurance.

USAA has now lowered the target for its latest catastrophe bond to $125 million, as  a zero-coupon tranche of notes from the Residential Reinsurance 2024 Limited (Series 2024-1) issuance have been dropped, while the other two multi-year tranches look set to price towards the lower-ends of guidance.

USAA, the most prolific and consistent sponsor of catastrophe bonds, has returned for what will be the 43rd issuance we have listed from the company, seeking $175 million or more in aggregate multi-peril US reinsurance from the capital markets through a Residential Reinsurance 2024 Limited (Series 2024-1) issuance.