USAA
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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.
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The issuance is split across three tranches with varying degrees of risk.
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The carrier has recognised two separate losses for the Palisades and Eaton fires.
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Its Class 13 and 14 notes priced roughly at the midpoint of expectations.
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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.
