US primary insurer Allstate extended the top of its Nationwide Per Occurrence catastrophe reinsurance tower by $2 billion to provide coverage for events up to $11.5 billion of loss at its April renewal, and also made some changes to its aggregate protection.
For Allstate’s main 2026-2027 Nationwide Per Occurrence tower, the retention is unchanged from the prior year at $1 billion, but above this sits contracts between $1 billion and $4.75 billion, which provides multi-year coverage placed with traditional reinsurers, with one contract providing $245 million of placed limits on a by peril basis (hurricane, fire, all other). Last year, this section of the tower extended to just $4.25 billion
Above this, for 2026-2027, Allstate has $2 billion of limit up to $6.75 billion, which includes $1.05 billion of coverage placed with one automatic reinstatement of limits, with additional premium due, and $950 million of catastrophe bond coverage not eligible for reinstatement of limits. Last year, this section of the tower also provided $2 billion of limit but up to $6.25 billion, and included $1.63 billion of coverage placed with traditional reinsurers, and $350 million of catastrophe bond coverage.
For the year ahead, contracts between $6.75 billion and $11.5 billion provide Allstate with $4.75 billion of reinsurance coverage, of which $2.5 billion was placed with traditional reinsurers, and $2.25 billion placed as catastrophe bonds. These limits are not eligible for reinstatement of limits. Allstate explains that within the top segment of its tower, most contracts shift down in attachment, subject to the $4.75 billion minimum retention level as lower layer limits are eroded. Last year, this tower extended to just $9.5 billion, with $2.03 billion placed as catastrophe bonds, and $1.21 billion placed with traditional reinsurers.
For the 2026-2027 Nationwide Per Occurrence catastrophe reinsurance tower, Allstate provides some information on eligible losses and how they inure to the benefit of its aggregate covers.
“For U.S. events below the $1.00 billion retention, Allstate retains all losses, subject to recovery from Aggregate coverage. For U.S. events above the $1.00 billion retention, Allstate retains $1.00 billion of loss plus reinstatement premium due. Eligible losses above $1.00 billion are ceded to participating reinsurers, up to $11.50 billion, and is subject to recovery from Aggregate coverage.”
Allstate has also made some adjustments to its Nationwide Aggregate reinsurance tower for 2026-2027. Unchanged from last year is the $50 million deductible, meaning that multi-peril losses above $50 million per event, net of reinsurance loss recoveries, are applicable. However, for 2025-2026, the aggregate provided $500 million of limit above a $4 billion retention, and excludes all Florida losses. For 2026-2027, the aggregate provides $150 million of limit for total losses between $4.78 billion and $5.28 billion, but still excludes all Florida losses.
Allstate explains that for 2026-2027, the “Existing contract was placed in the ILS market in 2023, and reset with a risk period of April 1, 2026 to March 31, 2027 based on the current risk profile.”
Last year, Allstate secured US Homeowners Aggregate protection, which only ran for seven months and provided $500 million of limit above a $3.5 billion retention, and was 65% placed. For 2026-2027, this has been replaced with what looks to be $1 billion of limit above an $8.5 billion retention, covering US property and auto lines, including the state of Florida, so is much broader coverage for the firm.
The large US insurer has taken advantage of current, competitive reinsurance market conditions and secured more protection in the softening rate environment.
You can see Allstate’s per occurrence and aggregate reinsurance coverage below:
Elsewhere, Allstate renewed its Canada Catastrophe Excess of Loss Reinsurance Contract at the January 1 renewal, increasing the coverage to CAD 577 million (CAD 478m last year) with an unchanged CAD 100 million retention.
The firm’s Kentucky Earthquake Excess Catastrophe Reinsurance Contract has also been renewed ahead of the June 1 2026 effective date, providing $28 million of placed limits, subject to a $2 million retention for 2026-2027, unchanged from the prior year.
“The total cost of our property catastrophe reinsurance programs, excluding reinstatement premiums, during the first quarter of 2026 was $308 million, compared to $257 million in the first quarter of 2025. The total cost of our catastrophe reinsurance program during 2025 was $1.23 billion,” said Allstate.
