P&C insurer Travelers has provided an update on the catastrophe reinsurance treaties it renewed on July 1.
The Northeast Property Catastrophe Excess-of-Loss Reinsurance Treaty provides up to $600 million part of $850 million of coverage, subject to a $2.25 billion retention for losses arising from a single occurrence, subject to one reinstatement.
Coverage is provided on an all-perils basis, including but not limited to hurricanes, tornadoes, hail storms, earthquakes, winter storms and/or freeze losses.
The treaty covers territory from Virginia to Maine for the period July 1, 2020 through and including June 30, 2021.
Losses from a covered event anywhere in North America and waters contiguous thereto may be used to satisfy the retention. Recoveries under the catastrophe bonds (if any) would be first applied to reduce losses subject to this treaty.
The Middle Market Earthquake Catastrophe Excess-of-Loss Reinsurance Treaty provides for up to $225 million part of $250 million of coverage, subject to a $110 million retention for losses arising from an earthquake.
The treaty covers the United States and Canada, their territories, possessions and waters contiguous thereto.
Travelers has also renewed its Canadian Property Catastrophe Excess-of-Loss Reinsurance Treaty.
This treaty provides coverage for 50% of losses in excess of C$100 million, up to C$200 million and for 100% of losses in excess of C$200 million, up to C$600 million, in each case with respect to the accumulation of net property losses arising out of one occurrence on business written by the Company’s Canadian businesses for the period July 1, 2020 through and including June 30, 2021.
The treaty covers all property written by the Company’s Canadian businesses, including, but not limited to, habitational property, commercial property, inland marine, ocean marine and auto physical damages exposures.
With respect to the Company’s indemnity reinsurance agreement with Long Point Re III Ltd., the attachment point and maximum limit were reset as required annually to adjust the expected loss of the layer within a predetermined range.
For the period from May 25, 2020 through and including May 24, 2021, the Company will be entitled to begin recovering amounts under this reinsurance agreement if the covered losses in the covered area for a single occurrence reach an initial attachment amount of $1.872 billion.
The full $500 million coverage amount is available until such covered losses reach a maximum $2.372 billion.