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Zurich adds $1bn quota share reinsurance for data center risks
Zurich said the move is tied to underwriting for at least 500 data center projects, with 70% led by the insurer, and it added a dedicated US peak peril catastrophe reinsurance tower backed by a $150 million cat bond.
Zurich announced it has secured a $1 billion quota share reinsurance arrangement to support growth in underwriting data center risks, citing accelerating industry activity in insuring large and hyperscaler projects.
The company said it has underwritten at least 500 projects for this business, with 70% seeing Zurich as the lead, and it described the new quota share as designed to support strategic growth in data centers. Zurich linked the demand backdrop to growing AI-driven needs for data center infrastructure, not only in the U.S. but globally.
In related disclosures, Zurich said it has also broken out its U.S. peak peril catastrophe reinsurance tower for the first time, showing separate protection after adding its $150 million Turicum Re Ltd. (Series 2026-1) catastrophe bond. According to Zurich, the Turicum Re cat bond provides multi-year, fully collateralized protection for U.S. named storm and earthquake reinsurance.
Zurich said the new tower separates peak perils from its broader U.S. all-perils tower, with the $650 million layer described as Zurich retention in the peak peril structure, and highlighted capacity constraints as data center risks expand.