USAA
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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.
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The bond will provide coverage for weather events in all 50 US states and the District of Columbia.
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The reinsurer is seeking $125mn in Class 13 notes and $275mn in Class 14 notes.
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The bond, which was first announced in October 2022, had an initial target size of $195mn.
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The multi-peril bond will cover all 50 US states and the District of Columbia.
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The market is characterised by rising prices and shrinking deal sizes as investors pick and choose over which bonds to back.
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The shifts reflect wider cat bond market challenges and changeability.
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The bond will provide coverage up to 2026, extendable to 2029.
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The Residential Re transaction is being offered with significantly higher spreads than a year ago in a sign of repricing benchmarks after Hurricane Ian.
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Cat bond spreads settled 11% above sponsor targets as many deals were scaled back or parked.
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The Class 10 zero-coupon structure notes have been withdrawn.
