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Progressive renews 2026-2027 property cat reinsurance tower up to $2.19bn
Progressive said it retained $75 million for a first Florida event and $300 million for a first event elsewhere, with FHCF and other layers designed to reduce catastrophe risk and protect capital.
Progressive Corporation has detailed its 2026-2027 Property Catastrophe per Occurrence reinsurance program, renewed June 1, 2026, using a tower structure that combines traditional reinsurance, cat bonds, and Florida Hurricane Catastrophe Fund coverage.
The program is designed to provide up to $2.19 billion of coverage for a first event in Florida and up to $1.85 billion for a first event elsewhere. It covers personal property and certain business owners property exposures against catastrophe losses including hurricanes, severe convective storms, named storms, fire following earthquake, severe winter weather, and wildfire.
Progressive said it retains $75 million of losses and allocated loss adjustment expenses for a first Florida event, and $300 million for a first event elsewhere. It then layers excess coverage above that retention, including a Florida-only XOL layer for $225 million excess of the $75 million retention after FHCF coverage, and FHCF contracts estimated at $112.6 million representing 90% of $125.1 million excess of a $71.7 million retention.
Beyond the June renewal, the program includes multiple layers that cascade depending on potential multiple-loss scenarios, with earlier layers providing a combined $750 million above the $300 million retention and later layers attaching at $1.05 billion. Progressive also included a shared $175 million Top and Aggregate limit for named storms effective through December 31, 2026, and said it intended the overall structure to reduce overall risk and protect capital against catastrophe costs.