Nationwide
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The pricing fell 13.7% on the Class A notes and 6.5% on the Class B notes. -
The bond is the second transaction from the sponsor to target per occurrence coverage.
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The insurer has switched to an occurrence structure for this multi-peril cat bond, having previously raised aggregate cover under the Caelus series of bonds.
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The insurer has lowered the target pricing on the new deal as cat bond demand proves robust.
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Markdowns have wiped more than $220mn off the value of $1.6bn of aggregate cat bonds benefitting major US insurers after the Texas Big Freeze.
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Pricing on the new cat bond moved to the top end of guidance.
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The occurrence and aggregate transaction will replace maturing and loss-impacted deals for the carrier.
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Nationwide, USAA and Allstate are other national carriers with significant property catastrophe market shares in the states.
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Broker Ryan Specialty Group signed up the US mutual insurer for a joint venture launching a Bermuda reinsurer.
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The move has pared back the carrier’s aggregate losses, benefiting Caelus cat bond investors.
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USAA’s losses put it on track to recoup another $82mn from its cat bonds, following a projected $182mn recovery in 2017.
