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USAA aggregate cat bonds in focus on winter storm impacts

March 1, 2021

Secondary market prices have dropped for some catastrophe bonds in the wake of recent severe winter storm losses in the United States, with aggregate Residential Re cat bonds, sponsored by primary military mutual insurer USAA, the names in investor focus.

We’ve analysed some catastrophe bond broker pricing sheets and it’s clear that investor nerves are heightened over the potential for relatively significant aggregate deductible erosion for some of these capital markets securitization sourced reinsurance arrangements, perhaps even some principal loss.

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