{"id":378,"date":"2025-07-17T11:51:02","date_gmt":"2025-07-17T11:51:02","guid":{"rendered":"https:\/\/shavlinoture.com\/?p=378"},"modified":"2025-07-23T10:20:42","modified_gmt":"2025-07-23T10:20:42","slug":"travelers-renews-mid-year-catastrophe-reinsurance-and-raises-long-point-cat-bond-retention","status":"publish","type":"post","link":"https:\/\/shavlinoture.com\/index.php\/2025\/07\/17\/travelers-renews-mid-year-catastrophe-reinsurance-and-raises-long-point-cat-bond-retention\/","title":{"rendered":"Travelers renews mid-year catastrophe reinsurance and raises Long Point cat bond retention"},"content":{"rendered":"

This content is copyright to www.artemis.bm<\/a> and should not appear anywhere else, or an infringement has occurred.<\/p>\n

US primary insurer Travelers has renewed substantially the same of its largest catastrophe reinsurance arrangements at the mid-year renewal season, although with some changes and a broadening of another of its covers, and perhaps a non-renewal of smaller treaties, while for the second year running the company has lifted its catastrophe bond attachment higher up the tower again.
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\n\"travelers-insurance-image\"Earlier this year, Travelers increased the amount of protection it receives under its main occurrence catastrophe excess-of-loss (XoL) reinsurance treaty to $3.675 billion at the January 1st renewals<\/a>, with a higher attachment.<\/p>\n

Last July, after the mid-year 2024 reinsurance renewals, the insurer had purchased more northeast catastrophe reinsurance protection<\/a>.<\/p>\n

At the same time Travelers lifted the attachment point for its $575 million Long Point Re IV Ltd. (Series 2022-1)<\/a> issuance from May 2022 by just over $300 million.<\/p>\n

Now, at the mid-year of 2025, Travelers has renewed the same catastrophe reinsurance arrangements as last year, with the few changes detailed below, but further lifted the cat bond\u2019s attachment point at its 2025 annual reset.<\/p>\n

Travelers has renewed its Northeast Property Catastrophe Excess-of-Loss Reinsurance to provide the same $1 billion of coverage, from the same $2.75 billion retention to run through the end of June 2026.<\/p>\n

The company notes that, \u201cRecoveries under the catastrophe bonds (if any) would be first applied to reduce losses subject to this treaty.\u201d<\/p>\n

Also renewed for the next year is Travelers Personal Insurance Catastrophe Excess-of-Loss Reinsurance Treaty that covers specific named storm and hurricane exposures across United States coastal states from Texas to Maine, but excluding Florida, but now also covers all other perils as well..<\/p>\n

For the 2024 hurricane season this reinsurance treaty only covered that peril and was renewed to provide $500 million of cover across a $1 billion layer for a single event, subject to a higher $2 billion retention.<\/p>\n

For 2025, this treaty has been renewed at to provide much broader coverage, as far as we can see, while the retention has halved to $1 billion.<\/p>\n

Alan Schnitzer, Travelers CEO said during an earnings call today, \u201cYou may recall that last year\u2019s treaty had an attachment point of $2 billion. While in a modelled year we wouldn\u2019t expect this to have much of an impact, given the prospect of continued weather volatility, we were pleased to obtain broader coverage at a reasonable cost.\u201d<\/p>\n

One other notable change to this renewal is that Travelers has not reported that its Middle Market Earthquake Catastrophe Excess-of-Loss Reinsurance Treaty has been renewed. This treaty was renewed a year ago and covered a one-year term to June 2025. So it appears the company may have non-renewed it this year, perhaps due to its other treaties having all grown to provide more reinsurance protection in recent years.<\/p>\n

The companies Canadian Property Catastrophe Excess-of-Loss Reinsurance Treaty, has been adjusted to provide more coverage, now attaching at C$100 million but covering all losses up to C$400 million, where as a year ago it only covered a 50% share of losses between C$100 million and C$200 million, but then 100% of losses up to C$500 million.<\/p>\n

So some adjustments there for this smaller treaty, which now covers more losses from the retention up.<\/p>\n

Onto the Long Point Re catastrophe bond, which a year ago saw its attachment point lifted to provide its $575 million of cover after a $2.79 billion retention, up from a $2.48 billion retention the year prior.<\/p>\n

Now, after the mid-year 2025 annual reset, Travelers Long Point Re cat bond will attach from a $2.89 billion retention.<\/p>\n

Travelers has continued to adjust its catastrophe reinsurance, growing its larger and more expansive treaties, while making smaller ones more focused, while the cat bond remains a core component of its arrangements.<\/p>\n

Read about Travelers second-quarter 2025 results over at our sister publication Reinsurance News<\/a>.<\/p>\n

Travelers renews mid-year catastrophe reinsurance and raises Long Point cat bond retention<\/a> was published by: www.Artemis.bm<\/a>
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This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. US primary insurer Travelers has renewed substantially the same of its largest catastrophe reinsurance arrangements at the mid-year renewal season, although with some…<\/p>\n","protected":false},"author":1,"featured_media":380,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[12],"tags":[],"_links":{"self":[{"href":"https:\/\/shavlinoture.com\/index.php\/wp-json\/wp\/v2\/posts\/378"}],"collection":[{"href":"https:\/\/shavlinoture.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/shavlinoture.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/shavlinoture.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/shavlinoture.com\/index.php\/wp-json\/wp\/v2\/comments?post=378"}],"version-history":[{"count":2,"href":"https:\/\/shavlinoture.com\/index.php\/wp-json\/wp\/v2\/posts\/378\/revisions"}],"predecessor-version":[{"id":381,"href":"https:\/\/shavlinoture.com\/index.php\/wp-json\/wp\/v2\/posts\/378\/revisions\/381"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/shavlinoture.com\/index.php\/wp-json\/wp\/v2\/media\/380"}],"wp:attachment":[{"href":"https:\/\/shavlinoture.com\/index.php\/wp-json\/wp\/v2\/media?parent=378"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/shavlinoture.com\/index.php\/wp-json\/wp\/v2\/categories?post=378"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/shavlinoture.com\/index.php\/wp-json\/wp\/v2\/tags?post=378"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}