AmCoastal lifts first-event reinsurance limit to $1.68bn at mid-year 2026 renewal

American Coastal Insurance Company (AmCoastal) has successfully renewed its core catastrophe reinsurance program for 2026/27, with first event limit now extending to $1.68 billion, as the company secured 14.4% more in coverage for $1.918 billion of occurrence-based limit in the aggregate.

First-event limit of $1.68 billion is now $349.5 million, or 26.3% higher than a year ago, while total cascading limit increased to $435 million.

AmCoastal’s core catastrophe program is designed for hurricane coverage in Florida. At the January 2026 renewals, AmCoastal grew its all other perils cover slightly and also refreshed its catastrophe aggregate coverage at the same size as the prior year.

During the company’s recent earnings call for Q1 2026, CEO Brad Martz, whilst speaking about AmCoastal’s mid-year 2026 reinsurance renewal, explained that reinsurance costs are moving in the right direction for the company, which helped it to buy a larger reinsurance tower this year.

Martz highlighted during the call how the company expected to obtain roughly $1.6 billion first-event cover for 2026.

AmCoastal also highlighted how it placed $200 million of new multi-year catastrophe bond limit in 2026.

Recall that AmCoastal Insurance recently priced its latest catastrophe bond, securing $200 million in multi-peril reinsurance from the capital markets from its Armor Re II Ltd. (Series 2026-1) issuance.

This cat bond also marked the first Florida-focused multi-peril cat bond where American Coastal Insurance Company is the sole sponsor.

You can read about all of American Coastal’s cat bonds by filtering our Deal Directory and you can see where the insurer ranks by cat bond risk capital outstanding in our catastrophe bond sponsor leaderboard.

With its new reinsurance tower now in place for the coming hurricane season, AmCoastal said it has sufficient coverage for both a single event and multi event according to catastrophe models approved by the Florida Office of Insurance Regulation.

Retentions have risen, but the company has continued to use its own reinsurance captive to assist with that, with a first-event retention of $49 million, with $26.5 million retained by AmCoastal and $22.5 million retained by its captive, an increase of $19.25 million from the $29.75 million retention in force a year ago.

In addition, second event retention has also risen, to up to $25 million assuming a 1-in-100-year event followed by a 1-in-50-year event in the same season, up $6.5 million from $18.5 million a year ago.

The second event retention figures also include a $6.5 million net retention from the E&S assumed portfolio.

AmCoastal also placed 15% multi-year external quota share coverage.

AmCoastal explained that the quota share arrangement is with an unaffiliated reinsurer holding an AM Best rating of A+, noting that it covers all catastrophe perils and attritional losses, subject to defined occurrence and aggregate limitations.

The cost of the renewed reinsurance program for 2026/27 was approximately $179.5 million, subject to change based on actual exposure at September 30, 2026), which AmCoastal said “compares to $201.85 million, or (11.1)%, to the 2025/26 Core CAT program.

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