Alamo Re Ltd

At a meeting of the Texas Windstorm Insurance Association (TWIA) Board today, the recently proposed new weighting methodology for a blending of catastrophe risk models to derive the 1-in-50 year PML was approved.

The Texas Windstorm Insurance Association (TWIA) has made some progress in determining how much in reinsurance and catastrophe bonds it will buy in 2026, as its Actuarial & Underwriting Committee met yesterday in a lengthy meeting to select a weighting methodology for a blending of risk models to derive the 1-in-50 year PML.

The Texas Windstorm Insurance Association (TWIA) is now projecting that the amount of reinsurance and catastrophe bonds it may require for the 2026 wind season could be roughly 46% lower than this year’s program, with $2.3 billion of limit the current forecast.

At a Board meeting of the Texas Windstorm Insurance Association (TWIA) yesterday, members discussed the evolution of the property insurer of last resort’s funding under new state legislation, concluding that it may result in TWIA opting to reset and perhaps even redeem early some of its catastrophe bonds.

The Board of the Texas Windstorm Insurance Association (TWIA) met today and one item up for discussion was the setting of the 1-in-100 year probable maximum loss (PML), a critical figure for defining its funding needs for the hurricane season and therefore its purchases of reinsurance and catastrophe bonds for 2025.

The Board of the Texas Windstorm Insurance Association (TWIA) has today approved a $485 million budget line item for ceded reinsurance and catastrophe bond spend for 2025, which is up 22% on the $397 million spent on protection for 2024.

The Texas Windstorm Insurance Association (TWIA) is looking at another relatively significant increase in its reinsurance purchase next year, as it projects it may need almost $5.8 billion of reinsurance and catastrophe bond limit, due to the near-erosion of its CRTF by hurricane Beryl and a still-rising PML.

The Texas Windstorm Insurance Association (TWIA) saw the overall rate-on-line across its reinsurance and catastrophe bond program that is in-force for the 2024 into 2025 period rise to 9.6% and as risk transfer comes with higher costs attached, the insurer of last resort is looking to options to help manage that expense.

The staff of the Texas Windstorm Insurance Association (TWIA) is set to recommend lawmakers consider a variety of ways to reduce its reinsurance purchases going forwards, primarily by amending the rules to allow other areas of statutory funding to be increased.

Having already secured its largest ever catastrophe bond issue this year, the Texas Windstorm Insurance Association (TWIA) is now ready to sign lines for its reinsurance renewal, with support secured for the rest of its capacity needs, according to staff and broker Gallagher Re’s executives.