American Coastal Insurance Company (AmCoastal) has successfully renewed its all other perils reinsurance arrangement for 2025 and added a latest $40 million catastrophe aggregate excess of loss agreement.
A yr ago, AmCoastal purchased an all other perils catastrophe excess of loss reinsurance agreement that provided the corporate as much as $100 million of limit.
For 2025, the all other perils catastrophe excess of loss agreement will provide the insurer as much as $90 million of occurrence limit excess of the identical $10 million attachment point to limit to lower American Coastal’s losses from catastrophe events apart from named windstorms and earthquakes.
The 2025 renewal of occurrence catastrophe cover for perils apart from named windstorms and earthquakes is reported to have cost AmCoastal roughly $11.9 million, which the insurer said reflected a risk adjusted decrease of -8% year-over-year.
After the retention, the 2025 reinsurance provides AmCoastal roughly $88.2 million of canopy for a primary event and $88.2 million for a second event, so $176.4 million in the mixture. The insurer noted that is an aggregate increase of $4.4 million or 2.6% year-over-year.
In addition to that, the insurer noted the effective attachment point for the catastrophe XoL occurrence reinsurance agreement decreased $4 million, or 28.6% year-over-year, from $14 million to $10 million.
Recall that, on the per-occurrence side, AmCoastal had sponsored in December 2024 a $200 million Armor Re II Ltd. (Series 2024-2) catastrophe bond that may provide the corporate just over three-year’s of fully-collateralized Florida named storm reinsurance protection.
As well as, at its 2025 reinsurance renewal, AmCoastal said it has purchased a latest catastrophe aggregate excess of loss reinsurance cover, that may protect the businesses in-force, latest and renewal business.
From January 1st 2025, the brand new aggregate reinsurance arrangement will provide the insurer $40 million of aggregate limit, with a $20 million per occurrence cap, excess of zero after the $40 million annual aggregate deductible has been exceeded.
It would limit AmCoastal’s from all catastrophe loss events, including named windstorms, severe convective storms and winter storm events for the complete calendar yr of 2025, for a value of around $6.6 million.
Read all of our reinsurance renewal news coverage.