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TWIA reinsurance and cat bond renewal for 2026 comes under budget
TWIA said the gross ceded premiums for $2.28 billion of risk transfer totaled $209.9 million, and the net cost was $199.4 million, about 12% below the program’s budget.
Texas Windstorm Insurance Association’s 2026 reinsurance and catastrophe bond renewal is coming in almost 12% under the budgeted spend for coverage, according to Artemis. TWIA’s reinsurance program for 2026 is tied to about $2.28 billion of risk transfer and reinsurance, including $1.05 billion supplied by the catastrophe bond market for the 2026 contract year. The documents for a TWIA board meeting later today show gross ceded premiums for the $2.28 billion in coverage totaled $209.9 million, below the $237 million budget estimate, and the net cost came in at $199.4 million versus a $225.2 million budget.
Artemis also reports that the program’s rate-on-line basis, or ROL, is about 9.21% for the 2026 reinsurance tower, compared with 10.2% a year earlier. TWIA staff are set to recommend to the board that it continues using Gallagher Re as its reinsurance broker, after an RFP process where only Gallagher Re and Guy Carpenter responded and the evaluation committee scored Gallagher Re slightly higher.
TWIA’s board will also choose its reinsurance broker for coming years after the RFP recommendation, and staff are expected to run an RFP for the catastrophe risk modeller role currently filled by Aon’s Impact Forecasting, with a recommendation planned for November.