Insurance
Home›Insurance›Reinsurance›Travelers renews Northeast property cat reinsurance, s…
Travelers renews Northeast property cat reinsurance, secures new cat bond
The Northeast property cat excess-of-loss treaty provides $1.0 billion of single-occurrence coverage with a $2.75 billion retention, while Travelers increased its capital markets-backed catastrophe bond to $750 million for 2026 to 2027.
Travelers renewed its Northeast Property Catastrophe Excess-of-Loss Reinsurance Treaty effective July 1, 2026, keeping coverage and retention terms unchanged from the prior year, according to Reinsurance News. The treaty provides $1.0 billion of coverage for losses from a single occurrence and allows for one reinstatement, subject to a $2.75 billion retention.
Travelers’ treaty covers territory from Virginia to Maine through June 30, 2027 on an all perils basis. The reinsurance includes perils such as hurricanes, tornadoes, hail storms, earthquakes, wildfires, and winter storms and freeze losses, with limited cyber event coverage and exclusions for communicable disease and certain nuclear, biological, and radiological terrorism attacks, Reinsurance News reported.
In the same renewal period, Travelers decided not to renew its Personal Insurance Catastrophe Excess-of-Loss Reinsurance Treaty. The insurer also returned to the catastrophe bond market in May after the expiration of its $575 million Long Point Re IV Ltd. series 2022-1 deal in May 2026, launching a new $750 million Long Point Re IV Ltd. series 2026-1 transaction.
For 2026 to 2027, the new cat bond provides up to $750 million, part of $1.0 billion of coverage, from May 25, 2026 through May 24, 2027, subject to a $2.85 billion retention. Travelers said the cat bond’s attachment point and maximum limit will be reset annually to adjust the expected loss of the layer within a predetermined range.