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Allstate reduces Florida excess catastrophe reinsurance coverage
The Florida program risk period runs from June 1, 2026 through May 31, 2027, with protection levels tied to the $30 million retention and a mix of traditional reinsurance, mandatory FHCF contracts, and catastrophe bonds.
Allstate has reduced the amount of protection in its Florida excess catastrophe reinsurance tower at its mid-year renewal, while renewing other related contracts with slight adjustments, according to Reinsurance News.
The outlet reports that under last year’s structure, the Florida cat reinsurance tower provided coverage up to $1.1 billion excess of a $30 million retention. It also included coverage for first event occurrences for events up to $951 million of loss less a $30 million retention, alongside coverage through the FHCF that provided a combined $153 million of limit.
For 2026 to 2027, Reinsurance News says the Florida cat coverage extends to $934 million with the same $30 million retention, and it includes consideration of mandatory FHCF contracts. The program’s risk period is June 1, 2026 to May 31, 2027, covering excess catastrophe losses in Florida for Allstate’s Castle Key Insurance Company, Castle Key Indemnity Company, and affiliated personal lines property entities.
Reinsurance News details that Allstate retains losses below $30 million, while first event coverage applies above $30 million and below $85 million for $55 million, split between $25 million from the traditional market and $30 million from its Sanders Re III 2026-3 catastrophe bond. It adds that second event coverage of $55 million is placed entirely with traditional reinsurers, with additional layers using mandatory FHCF contracts and further traditional and capital markets reinsurance higher in the tower.