Large US insurer Travelers was able to “meaningfully improve” its reinsurance coverage at the key January 1st, 2026, renewals, thanks in part to more favourable pricing, while the company also renewed its 20% quota share (QS) with Fidelis, Chief Financial Officer (CFO), Dan Frey, said recently.
Earlier today, Travelers reported a strong set of results for the fourth quarter and full year 2025, with higher net income for both periods and improved combined ratios as underwriting performance strengthened year-on-year.
The carrier also announced the details of its renewed catastrophe excess-of-loss (XoL) reinsurance programme for 2026, revealing a lower retention and a new $1 billion lower layer.
Speaking recently during the firm’s Q4 and full year 2025 earnings call with analysts, CFO Frey commented on the recent renewal, noting that Travelers is “very pleased with the changes”.
For 2026, the programme attaches at a $3 billion retention level, down from $4 billion for 2025, and a new $1 billion lower layer means the company has $4.675 billion in total reinsurance recovery for qualifying losses, up from the $3.675 billion available in 2025, while the per-occurrence loss deductible is unchanged at $100 million.
“We believe an all perils, cat aggregate is the most efficient way to protect the balance sheet. And the combination of our industry outperformance, refined reinsurance structures, and more favorable reinsurance pricing, have allowed us to meaningfully improve our coverage with only a modest increase to our total ceded premium costs,” said Frey.
Back in 2023, Travelers entered into a quota share with Bermuda-based re/insurer Fidelis Insurance, after making a strategic minority investment in the company. This agreement was renewed for both 2024 and 2025, and Frey confirmed today that the quota share has once again been renewed.
“Also, of interest for 2026, we continue to value our relationship with Fidelis, and are very pleased to have once again renewed our 20% quota share with them. The renewal includes the same loss ratio cap we’ve had in place since the quota share began in 2023,” said Frey.
Additionally, the CFO revealed that Travelers has renewed its enhanced casualty reinsurance programme, which was first introduced for 2025. “We were once again able to purchase working layer coverage on a roughly margin neutral basis,” he said.
Regular readers will be aware that property catastrophe reinsurance rates softened further at the 1.1 2026 renewals, with conditions notably more favourable for buyers. Travelers has taken advantage of current market dynamics and decided to purchase more coverage for the year ahead, while managing to lower the retention for only a modest rise in expenditure.
