USAA

Spreads on USAA’s latest deal priced below comparative issuances in 2023-2024.

Fully placed, this would equate to $275mn on the per-occurrence tower and $675mn on agg.

The sponsor is estimating a loss of ~$300mn in relation to one of last month’s US tornado events.

The issuance is split across three tranches with varying degrees of risk.

The carrier has recognised two separate losses for the Palisades and Eaton fires.

Its Class 13 and 14 notes priced roughly at the midpoint of expectations.

Pricing on the bond has settled at the lower end of initial guidance.

The bond will provide coverage for weather events in all 50 US states and the District of Columbia.

The reinsurer is seeking $125mn in Class 13 notes and $275mn in Class 14 notes.

The bond, which was first announced in October 2022, had an initial target size of $195mn.

The multi-peril bond will cover all 50 US states and the District of Columbia.

The market is characterised by rising prices and shrinking deal sizes as investors pick and choose over which bonds to back.

The shifts reflect wider cat bond market challenges and changeability.

The bond will provide coverage up to 2026, extendable to 2029.

The Residential Re transaction is being offered with significantly higher spreads than a year ago in a sign of repricing benchmarks after Hurricane Ian.

Cat bond spreads settled 11% above sponsor targets as many deals were scaled back or parked.

The Class 10 zero-coupon structure notes have been withdrawn.

The transaction includes a notably high-risk target layer amongst five tranches.

The carrier typically places an occurrence and an aggregate deal in the ILS market each year.

Some of the insurer’s bonds were among those modestly marked down after Ida.

Spreads fell by 11%-33% during the marketing process, with several of the deal’s layers pricing well below revised guidance.

Projected spreads on the deal range from 300bps at the bottom end of the lowest risk notes to 1000bps at the top of the highest-risk layer.

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.

Spreads on two of the three tranches fell below the range first offered to investors

Subrogation recoveries from 2017-18 Californian wildfire losses drive capital releases.

Earlier, the carrier added a pandemic exclusion to the annual aggregate bond.

The spreads on the new deal are set 17 percent higher than a similar 2019 USAA bond.

Pricing for both tranches of the deal stayed within the midpoint of the initial target range

The Texas-based military insurer is offering double-digit premiums across two tranches of its second bond of the year.

Nationwide, USAA and Allstate are other national carriers with significant property catastrophe market shares in the states.

This will have implications for Allstate, State Farm, USAA and other insurers which have sued the utility over Camp Fire losses.

USAA is set to raise $135mn from the deal, which did not specify a target at launch.

The loss tally for catastrophe bonds impacted by the 2017 disaster events has now climbed to $1.1bn, according to January pricing sheets.

USAA’s losses put it on track to recoup another $82mn from its cat bonds, following a projected $182mn recovery in 2017.

Cat bond investors have varying rights to share in subrogation benefits, as it has emerged following the Californian wildfires of 2017-2018.

The utility expects to source enough cash to finance its ongoing operations.

Projected cat bond losses from the 2017 disasters have increased by just over 10 percent to $997mn.

Heavy wildfire losses in 2018 may have a heavier impact on the ILS market than in 2017.

The insurer is expected to make significant recoveries from its aggregate cat bonds for the second year running.

The bond will provide the insurer with US multi-peril protection on an indemnity per occurrence basis.

The Camp Fire and Woolsey Fire have now destroyed 10,000 and 504 buildings respectively.

USAA is among the top 10 carriers with exposure to the loss and has already eroded aggregate deductibles for the current year of cover after this year’s hurricane season.

The military insurer has returned to the cat bond market with its second issuance of the year, in a deal offering double-digit premiums.

Floir data shows that First Protective has the largest market share, at 9.4 percent, followed by USAA, with 7.6 percent.

A $55mn Texas storm event has added to existing losses, sources said.

The new Residential Re cat bond for military insurer USAA has expanded by more than 70 percent over the course of marketing, settling at $300mn from an initial target of $175mn, Trading Risk understands.

USAA has expanded the target size of its new Residential Re cat bond by $50mn-$150mn in one of the first renewals of a loss-affected cat bond.

Several low-lying aggregate tranches of Residential Re cat bonds are expected to pay out to USAA after the insurer's winter storm losses took its annual covered losses to $1.03bn, Trading Risk understands.