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TWIA forecasts 10% lower reinsurance and cat bond need for 2027

TWIA expects its Catastrophe Reserve Trust Fund to rise from $25 million this year to as much as $350 million ahead of the 2027 renewals.

Reported · Written up by our desk · Reinsurance

The Texas Windstorm Insurance Association, TWIA, forecast that its reinsurance and catastrophe bond requirement for 2027 will be about 10% lower than this year, projecting a need of roughly $2.05 billion, according to Reinsurance News.

TWIA said its Catastrophe Reserve Trust Fund, CRTF, is expected to grow from $25 million this year to as much as $350 million ahead of the 2027 renewals.

The association also projected a 2027 risk transfer budget of around $173 million, about 18% below this year’s almost $210 million, with softer reinsurance and catastrophe bond pricing expected to help reduce costs, the outlet reported.

At the mid-year 2026 renewals, TWIA secured about $2.28 billion of risk transfer and reinsurance, including $1.05 billion of catastrophe bond limit, and it noted the Board is keeping the 1-in-50-year probable maximum loss target for 2027 after rejecting a return to the 1-in-100-year level.

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