USAA EXTENDS CAT BOND MATURITY DUE TO WILDFIRE LOSS DEVELOPMENT

The maturity date of US insurance and financial services group USAA’s Residential Reinsurance 2013 Ltd (Series 2013-2) catastrophe bond has been pushed back by three months to June 6 owing to continued development of its losses from fourth-quarter wildfires in California, artemis.bm has reported. It marked the second extension of the notes’ maturity date. USAA had previously allowed only half of the $80m tranche of notes to mature last December 6 and extended the maturity date of the remaining $40m in Class 1 notes to March 6. The notes provide USAA with collateralised per-occurrence cover against losses from US tropical storms, earthquakes, thunderstorms and winter storms and California wildfires. The Texas-based group previously estimated wildfire losses in a range of $387m to $581m. The Series 3013-2 notes are triggered at losses of $400m.