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Allstate adjusts Florida reinsurance tower, boosting cat bond coverage
Allstate’s 2026 Florida catastrophe reinsurance tower tops out at $934 million per occurrence, with $380 million of cat bond limit versus $216 million in 2025.
Allstate has made changes to its Florida catastrophe reinsurance structure at the 2026 renewals, shrinking the overall tower slightly while increasing the portion funded through insurance-linked securities, Artemis reported.
After the mid-year 2025 renewals, Allstate’s Florida catastrophe reinsurance tower extended to cover $1.1 billion of losses, with cat bond support split between $150 million of limit from Sanders Re II Ltd. (Series 2025-2) and $66 million from a one-year Sanders Re II Ltd. (Series 2025-3) sponsorship.
For the 2026 tower, Allstate still includes the $150 million Sanders Re II Ltd. (Series 2025-2) limit, added $200 million of Florida reinsurance limit via its May 2026 sponsorship of Sanders Re III Ltd. (Series 2026-2), and added another $30 million through a June 2026 one-year issuance, Sanders Re III Ltd. (Series 2026-3).
As a result, across the 2026 Florida catastrophe reinsurance tower, Allstate has $380 million of cat bond limit, up from $216 million in the 2025 Florida cat tower, while the per-occurrence top of the 2026 tower is $934 million and the retention remains $30 million, according to Artemis.