Business UpdateMay 15, 2026, 04:19 PM
American Coastal Insurance Renews CAT Reinsurance, $1.92B Limit, 11.1% Cost Drop
AI Summary
American Coastal Insurance Corporation, through its subsidiary AmCoastal, renewed its core catastrophe reinsurance program effective June 1, 2026. The program now provides approximately $1.918 billion of occurrence-based limit, a 14.4% increase from the previous year. Despite the increased coverage, the provisional cost of the excess of loss reinsurance programs decreased by 11.1% to approximately $179.5 million. The company also placed $200 million in new multi-year Catastrophe Bond limit and increased its first and second event retentions.
Key Highlights
- Renewed core catastrophe reinsurance program effective June 1, 2026.
- Purchased $1.918 billion of occurrence-based limit, up 14.4% from $1.676 billion.
- Provisional cost of excess of loss programs decreased by 11.1% to approximately $179.5 million.
- Placed $200 million of new multi-year Catastrophe Bond limit.
- Estimated first event limit of $1.68 billion, an increase of 26.3%.
- First event retention increased to $49 million (15.4% of stockholders’ equity).
- Maximum reinstatement premium exposure decreased by 84.0% to $0.9 million.
Price Impact
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