United Services Automobile Association has extended the maturity dates for $170 million in catastrophe bond notes by three months to Sept. 6, Artemis reported.
The insurer reportedly extended the $50 million zero-coupon class 10 tranche of notes from its Residential Reinsurance 2017 Ltd. (Series 2017-1) cat bond, $80 million in class 10 notes from the Residential Reinsurance 2014 Ltd. (Series 2014-1) transaction and the remaining $40 million principal of the Residential Reinsurance 2013 Ltd. (Series 2013-2) catastrophe bond class 1 notes.
The association is waiting for loss developments from 2017 and 2018, particularly from the California wildfires and a winter storm, the insurance-linked securities blog reported.
The catastrophe bonds provide reinsurance coverage for hurricane, wildfire and winter storm loss events. The association has already twice extended the maturity date of the ResRe 2013-2 notes.
