In 2026, American Integrity Insurance feels that renewed flexibility in the catastrophe bond market and attractive pricing environment is creating good opportunities for the company, with its senior executives citing the ability to attach reinsurance cover lower down and the return of some cascading features.
As we’d highlighted in our coverage, the company secured the cat bond issuance at attractive pricing levels and upsized from the original target of $175 million, while at the same time the deal features one of the riskiest and highest-paying tranches of cat bond notes ever seen in the 144A market.
During American Integrity Insurance Group’s earnings call yesterday, executives highlighted the cat bond market as a sign of the direction reinsurance pricing is heading, while also explaining that the insurer is finding greater flexibility in cat bond coverage is becoming available again.
Jon Ritchie, President of American Integrity Insurance, commented on the outlook for the reinsurance renewals that, “The combination of the catastrophe loss-free year in Florida and increased capital availability in the global reinsurance market, mean expectations for favourable pricing for our reinsurance renewal are high. Many market commentators estimate that, depending on region, risk-adjusted rate decreases will range from 10%-20% for 2026 renewals.”
Later in the call, in response to an analyst question, Jon Ritchie said, “Certainly the reinsurance market is advantageous for buyers this cycle. Capacity is abundant, pricing is going down on a risk-adjusted basis.
“We have seen early signs of this, as we’re in the ILS market issuing our cat bonds that are closing this week.
“Certainly, in the traditional market, early conversations that we’ve had with our trading partners in Bermuda and London are very favourable.”
As for what American Integrity will be hoping to achieve with its catastrophe reinsurance renewal this year, he explained, “In terms of our buying habits, they will be consistent with prior years, certainly from a vertical perspective of limit, but also horizontal. We will have third and fourth event cover to cover the 2026 storm season on both a frequency and severity basis.”
Adding, “It’s our intent, as we continue to place our reinsurance cover for the 2026 renewal cycle, that retentions will be consistent with the prior treaty year.”
Later during the earnings call, the executives were asked about the structure of the reinsurance program American Integrity expects to renew this year.
Jon Ritchie responded and highlighted the increased flexibility available in the cat bond and insurance-linked securities market, “We are finalising the structure as we go to market to place our cover for this year. On a first event basis, the retention will be consistent with the 2025-2026 treaty year, and we’re looking at options on second event.
“Certainly on a third and fourth event basis, we have been able to get additional cover for those events, and particularly some cascading features in the ILS market have returned, and we’re able to attach lower for those tranches of cover that we’re placing.
“We are finalising our thoughts on third and fourth event, but retention is something that’s incredibly important to us, to keep that as low as possible.”
Here CEO Robert Ritchie added, “Especially post-first event. So, we’re being thoughtful, creative, and these cat bonds and their flexibility and pricing are creating some really good opportunities this year for us.
“Stay tuned, and I think you will, as a group of analysts and shareholders, like the outcome.”
It’s clear from the executives comments that they are pleased with the way cat bond investors responded to their latest sponsorship and that they feel the ILS market has become more accommodating on more than just price in 2026.
It perhaps speaks to the broadening of the catastrophe bond investor base as well, as features like cascading or top and drop are not appealing to everyone. While the fact American Integrity successfully priced one of the highest-paying cat bond tranches ever below initial guidance in its latest issuance speaks volumes to the keen pricing and greater flexibility being seen.
You can read all about the new Integrity Re III Ltd. (Series 2026-1) catastrophe bond and every cat bond deal in the Artemis Deal Directory.
