Global insurer Liberty Mutual Group renewed its property catastrophe reinsurance programme at the January 1st, 2026, renewals, securing $2.75 billion of occurrence limit excess a $1 billion retention, alongside $500 million of tail aggregate cover and $100 million of aggregate protection “closer to income-volatility protection.”
For 2026, the retention for the core, North America property occurrence tower is unchanged from the previous year, while the top of the tower only extends to $3.75 billion this year, compared with $3.8 billion for 2025, as Liberty Mutual opted to reduce the volume of occurrence limit by $500 million.
At this year’s renewal, Liberty enhanced coverage through all perils placement across the core tower, whereas for 2025, the initial $1.5 billion was available on an all-perils basis.
So, all market layers for the 2026 renewal are written on an all-perils basis, with a small portion of the top layer limited to just hurricane and earthquake events, with one reinstatement.
Last year, a much larger, $1.3 billion of named storm and earthquake only cover was secured by the firm, which sat above the $1.5 billion of all-perils limit.
“We successfully placed our North America property catastrophe program on attractive terms, maintaining a $1 billion occurrence attachment point while enhancing coverage through all perils placement across the core tower, improved terms and conditions and select multiyear placements,” said Julie Haase, CFO of Liberty Mutual, during the firm’s recent earnings call. “We also continue to carry an aggregate property catastrophe treaty to help protect against frequency and severity of loss.”
For 2026, Liberty opted to lift the attachment point of its aggregate reinsurance protection to $3.15 billion, compared with $2.4 billion for 2025. However, this year, Liberty has disclosed an additional $100 million of aggregate cover “closer to income-volatility protection,” which appears to be the Class C tranche of its Mystic Re IV Ltd. (Series 2025-1) catastrophe bond.
The other two tranches of the 2025 cat bond issuance provide occurrence coverage and are therefore part of the core property occurrence tower. In December, Liberty sponsored Mystic Re IV Ltd. (Series 2026-1), a $150 million deal, which, as you can see from the diagram below, covers a portion of the tower above the retention, extending to the top of the programme. Liberty explains that the Mystic Re cat bonds include certain named perils and no reinstatement.
“2026 is the strongest capital position in our company’s history. We will manage this capital base in the best interest of our policyholders today and in the future,” said Haase.
