American Integrity Insurance Company has renewed a solid $409.1 million increase in reinsurance limit this year, helped by its latest catastrophe bond transaction, resulting in a reinsurance tower that now extends to $2.99 billion.
“This year’s placement benefits from meaningful risk-adjusted rate reductions at the upper end of a US property catastrophe market that was publicly expected to be priced down 15-20% for June 1 renewals, improved terms and conditions, and an improved net retention profile.”
“Due to the continued growth in premium and exposure that we have experienced over the past year, we have increased our total third-party excess of loss reinsurance limit for all occurrences by $409.1 million, or 15.8%, to $2.99 billion, over the 2025 treaty,” Ritchie added.
American Integrity’s 2026/27 reinsurance tower provides $2.25 billion of single event limit from third-parties, while total third-party coverage for all occurrences is $2.99 billion.
However, while the amount of reinsurance limit renewed rose by 15.8%, premiums ceded are set to total between $430 to $440 million for the treaty year, in comparison to $433 million from 2025.
American Integrity also explained that the $3 billion placement is a combination of protection provided by traditional reinsurers, insurance-linked securities (ILS) investors, the FHCF and its captive reinsurer.
The entire program is indemnity based, with no parametric covers. The traditional reinsurance market represents approximately $1.65 billion of limit, up from $1.1 billion last year. There is no material multi-year coverage in the traditional reinsurance placement.
The insurer also stated that the ILS market includes the $565 million catastrophe bonds issued in 2025, which expire at the end of the 2026 treaty year (May 2027), as well as an additional $260 million via its recently sponsored Integrity Re III Ltd. (Series 2026-1) catastrophe bond issuance, which expires at the end of the 2028 treaty year (May 2029).
The FHCF provides $572 million of limit (with a participation of 90%).
Shortly after the Integrity Re III Ltd. (Series 2026-1) transaction was completed, senior executives from the firm highlighted how American Integrity Insurance feels that renewed flexibility within both the cat bond market and attractive pricing environment is creating good opportunities for the company.
American Integrity described market conditions as favourable for this year’s renewal, largely as a result of a healthy reinsurance market, the success of the Florida legislative reforms and the lack of severe storm activity in 2025.
The insurer’s first event retention will remain flat at $35 million, while its second event retention will decrease from $35 million to $20 million for named storms, with $10 million of those amounts retained by AIIC and the remainder retained by its segregated cell captive reinsurer.
The net retention for third events decreases from $15.8 million to $10 million, while fourth events will also remain flat at $10 million.
American Integrity also explained that in a four-event hurricane season, its aggregate retention has decreased from $95 million to $75 million while the firm’s ex-Florida first storm retention has decreased from $35 million to $10 million.
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