US insurer Progressive has renewed its per-occurrence property catastrophe excess-of-loss reinsurance program to provide it with $2.19 billion of limits for first events affecting Florida and $1.85 billion of coverage for first events impacting other states, at the June 1 renewals.
It’s a similar sized reinsurance tower to the Progressive renewal at the mid-year of 2025 at around $2.2 billion, while this year the company has $400 million of outstanding Bonanza Re catastrophe bond protection as part of its 2026 reinsurance arrangements.
Recall that, at the January 1 2026 reinsurance renewals, Progressive expanded its aggregate excess-of-loss reinsurance protection and renewed a hurricane season focused shared reinsurance limit arrangement to cover losses from any storms this year.
The insurer has also secured $125 million of aggregate catastrophe reinsurance limit from its most recent catastrophe bond, the Bonanza Re Ltd. (Series 2025-1) issuance that it sponsored in December 2025.
In addition, two tranches remain in-force from Progressive’s 2024 cat bond sponsorship, the Bonanza Re Ltd. (Series 2024-1) issuance.
At the June 1 reinsurance renewals, Progressive has renewed its property per-occurrence excess of loss (XoL) tower, which with the additional coverage from catastrophe bonds and its Florida Hurricane Catastrophe Fund (FHCF) participation, now provides $2.19 billion for a first event in Florida and $1.85 billion for a first event outside of Florida, also including the shared limit protection purchased at the start of this year.
The per-occurrence reinsurance has a retention of $300 million of losses and loss adjustment expenses (LAE) for a first event outside of Florida and $75 million for any first event in Florida.
Second and subsequent event coverage depends on the location and extent of covered losses suffered in the annual risk period from June 1st, while some of the tower have an obligatory reinstatement of coverage.
A Florida only XoL layer provides $225 million of coverage after a $75 million retention threshold and after FHCF coverage, with the FHCF component providing for $112.6 million of cover in excess of a $71.7 million retention.
The per-occurrence XoL tower includes $275 million of Bonanza Re catastrophe bond coverage, all from the 2024 issuance, while the remaining $125 million of catastrophe bond protection from the Bonanza Re 2025 issuance sits in the aggregate XoL reinsurance tower for Progressive.
As we reported after the January renewals, the aggregate reinsurance tower features $300 million of limit for 2026 attaching at over $550 million of losses.
Events must be designated by PCS to qualify under the aggregate reinsurance protection.
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