LONDON (Reuters) – American insurers Travelers Co Inc and United Services Automobile Association plan to raise about $300 million of protection against potential hurricane claims via a sale of catastrophe bonds, market sources said on Friday.
Travelers is seeking to raise about $150 million by selling cat bonds through its Longpoint Re vehicle, while USAA also hopes to raise $150 million, using its Residential Re structure.
The targeted issue sizes are indicative only and could change depending on the strength of investor demand.
Many recent cat bond deals have exceeded their original target size, reflecting growing investor interest in the securities, which offer competitive investment returns that are largely insulated from economic and financial market downturns.
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