Florida-based American Coastal Insurance Corp. (ACIC) has renewed its core catastrophe reinsurance programme (Core CAT) for 2026/27, purchasing approximately $1.918 billion of occurrence-based limit in the aggregate, an increase of $241.5 million, or 14.4% from the previous year.
For the renewed Core CAT programme, facilitated through its insurance subsidiary AmCoastal, ACIC capitalised on the shifting market dynamics by integrating alternative capital, securing an external quota share, and optimising its layers to build a strong protection against single and multi-event hurricane seasons.
Earlier in the year, ACIC renewed its all other perils catastrophe excess of loss agreement (AOP CAT agreement) for 2026, providing up to $95.6 million of occurrence limit excess of the $10 million attachment point to limit the insurer’s losses from cat events other than named windstorms and earthquakes.
The 2026/27 programme has expanded protection with an occurrence-based limit of $1.68 billion, an increase of $349.5 million, or 26.3%, from the 2025/26 Core CAT program.
It also boasts a first event retention of up to $49 million, with $26.5 million retained by AmCoastal and $22.5 million retained by the affiliated captive, an increase of $19.25 million from the $29.75 million in the 2025/26 Core CAT program.
According to ACIC, the first event retention figures include a $6.5 million net retention from the excess and surplus (E&S) assumed portfolio.
Second event retention goes 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 in the 2025/26 Core CAT program.
The second event retention figures also include a $6.5 million net retention from the E&S assumed portfolio.
To diversify its capital mix, ACIC successfully placed $200 million in new multi-year catastrophe bonds for 2026.
This was split into two $100 million tranches, one below and alongside the Florida Hurricane Catastrophe Fund (FHCF) layer and one at the top of the program.
“For the FHCF Reimbursement Contract effective June 1, 2026, ACIC elected 90% coverage. The total mandatory FHCF layer is projected to provide approximately $571.5 million of total Florida-only coverage attaching at $363.7 million and exhausting at $998.7 million, which inures to the benefit of the open market catastrophe reinsurance program,” ACIC added.
Additionally, the maximum reinstatement premium exposure was reduced by 84%, from the 2025/26 Core CAT Program, dropping to just $0.9 million.
According to ACIC, all catastrophe perils are covered, including windstorms named or numbered by the National Hurricane Center.
