American Coastal renews other perils & catastrophe aggregate XoL reinsurance for 2026

American Coastal Insurance Company (AmCoastal) has successfully renewed two excess-of-loss catastrophe reinsurance arrangements at the January 2026 renewals, growing its all other perils cover slightly and also refreshing its catastrophe aggregate coverage at the same size as last year.

A year ago, American Coastal (AmCoastal) purchased other perils catastrophe excess of loss agreement that provided up to $90 million of occurrence limit and $176.4 million in the aggregate, as well as buying a $40 million catastrophe aggregate excess of loss reinsurance cover for the first time.

Then, at the June 2025 renewals, AmCoastal successfully renewed its core catastrophe reinsurance program with first event limit of $1.33 billion, which was 4% more in coverage for roughly $1.676 billion of occurrence-based limit in the aggregate.

It’s also worth recalling that AmCoastal has two Florida named storm catastrophe bonds in-force as part of its core catastrophe program, a $200 million Armor Re II Ltd. (Series 2024-1) cat bond it sponsored in April 2024, and another $200 million cat bond Armor Re II Ltd. (Series 2024-2) it sponsored in December 2024.

Today’s news is about the frequency reinsurance protection AmCoastal renews in January each year.

For 2026, AmCoastal has renewed its all other perils catastrophe excess-of-loss reinsurance to provide it with up to $95.6 million of occurrence limit in excess of the same $10 million attachment point that was in-force last year. Last year it provided up to $90 million of occurrence limit for the first event.

This cover limits the insurer’s losses from catastrophe loss events other than named windstorms and earthquakes and its retention is $10 million per-occurrence, after quota share protection is accounted for.

Exclusive of the retention, this all other perils catastrophe cover provides AmCoastal reinsurance of $95.6 million for a first event, or $170.4 million in the aggregate for the 2026 calendar year.

The insurer said the all other perils cover, which is slightly larger for 2026, cost roughly $11.4 million, inclusive of reinstatement premium protection.

A year ago the slightly smaller all other perils cover cost a little more, at $11.9 million.

On the aggregate protection side, AmCoastal has renewed the catastrophe aggregate reinsurance at the same $40 million size as a year ago, covering its in-force, new and renewal business.

Aggregate losses attach once the $40 million deductible is eroded and there is a $20 million per occurrence cap enforced for this coverage, meaning it will take two events at least to attach the catastrophe aggregate reinsurance protection.

The aggregate reinsurance covers AmCoastal’s losses from all catastrophe loss, including named windstorms, severe convective storms and winter storm events, across the full year ending December 31st 2026.

AmCoastal said the annual aggregate reinsurance comes with an approximate cost of $4.9 million for the 2026 year, which is down on the $6.6 million cost of the same cover for 2025.

Read all of our reinsurance renewal news coverage.