Dan Frey, Chief Financial Officer at Travelers, said the firm opted not to renew its Personal Insurance Catastrophe Excess-of-Loss (XOL) Reinsurance Treaty at July 1, as its enhanced enterprise-wide catastrophe reinsurance program, secured at January 1, offered a “more attractive way” to obtain the desired reinsurance protection.
“On July 1, we renewed our Northeast property cat XOL treaty, which continues to provide $1 billion of occurrence coverage above the attachment point of $2.75 billion,” Frey observed in Travelers’ Q2 2026 earnings call held last Friday.
As we’ve covered, the US primary insurer chose not to renew its Personal Insurance Catastrophe XOL Reinsurance Treaty at July 1, which it had purchased in 2024 and 2025.
On this, Frey noted, “Recall that when we renewed our general corporate cat treaty at January 1 this year, we decreased the attachment point from $4 billion to $3 billion.”
This change lowered Travelers’ net exposure to mid-sized catastrophe events, with reinsurance kicking in earlier.
Frey continued, “The efficiency of that all-perils enterprise-wide program was a more attractive way of getting the reinsurance coverage we wanted.”
During Travelers’ Q2 2026 earnings call, Frey also commented on the expansion of catastrophe bond protection at July 1, stating, “We replaced our expiring cat bond in May with a new cat bond, increasing the bond size from $575 million to $750 million and decreasing the retention slightly.”
Read more about Travelers’ Long Point Re IV Ltd. (Series 2026-1) catastrophe bond, along with many others, in the Deal Directory from our sister publication, Artemis.
The directory contains details on more than 1,000 catastrophe bonds and related insurance-linked securities (ILS) transactions issued since the market’s inception in the mid-1990s.
