US insurer USAA has priced its Residential Reinsurance 2026 Ltd. (Series 2026-2) catastrophe bond at $350 million, Artemis reported on 23 October. USAA first sought $225 million, so the final size is 56% larger. Price guidance fell at each update, and all three classes of notes priced below their initial ranges.
Once the notes settle, Artemis said, they are to give USAA four years of multi-peril reinsurance on an indemnity trigger and a per-occurrence basis, from 1 December 2026 to 30 November 2030. According to Artemis, the $100 million Class 2 notes, with a base expected loss of 6.04%, priced at 7.25%, compared with initial guidance of 8.5% to 9.25%. The $100 million Class 3 notes, with an expected loss of 3.34%, priced at 4%, down from 5% to 5.5%. For the $150 million Class 5 notes, with an expected loss of 1.43%, sources told Artemis the spread was 2%, against guidance of 2.5% to 3%.
Artemis counts the deal as USAA's 48th catastrophe bond and describes Residential Re as the most prolific sponsor programme in the market. The publication called the result strong for USAA, which is set to buy more cover than it first planned at prices well below initial guidance.
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Artemis ↗News publisher · 23 Oct 2026
This is an original brief based on the linked publication. Company statements and forecasts are attributed to their source.
