{"id":440,"date":"2025-05-01T12:55:24","date_gmt":"2025-05-01T12:55:24","guid":{"rendered":"http:\/\/www.atsnorfolk.com\/?p=440"},"modified":"2025-05-07T14:22:54","modified_gmt":"2025-05-07T14:22:54","slug":"allstate-lifts-nationwide-reinsurance-tower-to-9-5bn-agg-cat-bonds-attach-at-4bn-in-2025","status":"publish","type":"post","link":"http:\/\/www.atsnorfolk.com\/index.php\/2025\/05\/01\/allstate-lifts-nationwide-reinsurance-tower-to-9-5bn-agg-cat-bonds-attach-at-4bn-in-2025\/","title":{"rendered":"Allstate lifts Nationwide reinsurance tower to $9.5bn. Agg cat bonds attach at $4bn in 2025"},"content":{"rendered":"

This content is copyright to www.artemis.bm<\/a> and should not appear anywhere else, or an infringement has occurred.<\/p>\n

US primary insurer Allstate has lifted the top of its main occurrence Nationwide Excess Catastrophe Reinsurance Program to a new high of $9.5 billion at its recent renewal, with catastrophe bond coverage a growing component, while its retention has also increased to now $1 billion across the tower.
\n<\/span>
\n\"allstate-2025-2026-nationwide-catastrophe-reinsurance-tower\"It’s also notable that for the annual risk period running from April 1st 2025, Allstate’s aggregate catastrophe bonds will now only attach for any losses above $4 billion, higher than last year’s $3.6 billion attachment level.<\/p>\n

Last year, at its April 1st 2024 reinsurance renewal<\/a>, Allstate lifted the top of its Nationwide excess catastrophe reinsurance tower to just over $7.9 billion on the occurrence side, which was almost a $1 billion increase from the prior year and with catastrophe bonds filling out much of the upper-layers.<\/p>\n

At the April 1st 2025 renewal, Allstate has continued the trend of lifting the top of the reinsurance tower higher, with the occurrence side now extending to $9.5 billion, another significant increase.<\/p>\n

It’s not quite a $1.5 billion increase given differences in retention, but certainly close to. Allstate’s executives said during an earnings call today that its catastrophe reinsurance renewal priced slightly down, on a risk-adjusted basis compared to the prior year.<\/p>\n

Once again, per-occurrence coverage from the Sanders Re catastrophe bond program remains a meaningful contributor, especially in the upper-layers of the reinsurance tower at $4.25 billion for one cat bond, but the majority sitting above $6.25 billion this year.<\/p>\n

Notably though, Allstate is set to retain a little more in catastrophe losses over the next year, for an occurrence event, with a $1 billion retention across the bottom of the entire tower, where as last year it had some additional coverage that extended a little lower-down as well<\/a>.<\/p>\n

You can see the new Nationwide catastrophe reinsurance tower for 2025 into 2026 below and compare with last year’s here<\/a>.<\/p>\n

\"allstate-2025-2026-nationwide-catastrophe-reinsurance-tower\"<\/p>\n

With currently over $3.36 billion of catastrophe bonds outstanding Allstate is the largest sponsor in the market at this time<\/a>.<\/p>\n

Some of those are providing protection for its Florida reinsurance tower that renews at the mid-year, but at this time there are $2.7 billion of outstanding Sanders Re catastrophe bonds that provide protection for the Nationwide occurrence and aggregate reinsurance towers for Allstate.<\/p>\n

You can read about all of Allstate’s catastrophe bonds by filtering our Deal Directory by sponsor<\/a>.<\/p>\n

Of that, $500 million provides aggregate reinsurance protection for Allstate.<\/p>\n

However, after the previously reported $123 million of reinsurance recoveries for the prior annual aggregate risk-period<\/a> that ended March 31st, a $66 million portion of the lowest Class C tranche of the Sanders Re III Ltd. (Series 2022-1)<\/a> cat bond is now marked for possible recovery.<\/p>\n

Remember, the rest of that $123 million recovery<\/a> is set to come from the $150 million Class B tranche of notes from the Sanders Re II Ltd. (Series 2021-2)<\/a> issuance that are now on an extension of maturity, but off-risk for future loss events.<\/p>\n

So Allstate has continued to grow its nationwide occurrence reinsurance protection, while the aggregate limit has shrunk slightly with just three tranches now set to provide aggregate protection of $500 million this year, compared to four tranches that provided $650 million of aggregate protection for the recently ended annual risk period.<\/p>\n

Also notable is the fact Allstate’s annual aggregate cat bond coverage will only attach above $4 billion of losses for the coming year, compared to the $3.6 billion attachment of last year. The $50 million per-event deductible remains the same for 2025 into 2026.<\/p>\n

On its renewals for April 1st, Allstate said the total cost of its property catastrophe reinsurance programs, excluding reinstatement premiums, was $257 million and $286 million in the first quarter of 2025 and 2024, respectively.<\/p>\n

So, with more protection purchased and a lower-cost achieved, it seems Allstate’s renewal indicates softening, especially at the higher-layers where it has been buying more limit.<\/p>\n

Finally, from the latest disclosure by Allstate, the insurer has already renewed its Kentucky earthquake excess-of-loss catastrophe reinsurance for the next year, securing $28 million excess of a $2 million retention that provides one-year of cover to May 31st 2026. For the coming year this seems to be fully-placed, where as last year’s contract was only 95% placed.<\/p>\n

View details of every catastrophe bond ever sponsored by Allstate here<\/a>.<\/strong><\/p>\n

Read all of our reinsurance renewals news<\/a>.<\/strong><\/p>\n

Allstate lifts Nationwide reinsurance tower to $9.5bn. Agg cat bonds attach at $4bn in 2025<\/a> was published by: www.Artemis.bm<\/a>
\nOur catastrophe bond deal directory<\/a>
\nSign up for our free weekly email newsletter here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

This content is copyright to www.artemis.bm and should not appear anywhere else, or an infringement has occurred. US primary insurer Allstate has lifted the top […]<\/p>\n","protected":false},"author":1,"featured_media":442,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-440","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-reinsurance-renewals"],"_links":{"self":[{"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/posts\/440","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/comments?post=440"}],"version-history":[{"count":2,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/posts\/440\/revisions"}],"predecessor-version":[{"id":443,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/posts\/440\/revisions\/443"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/media\/442"}],"wp:attachment":[{"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/media?parent=440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/categories?post=440"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.atsnorfolk.com\/index.php\/wp-json\/wp\/v2\/tags?post=440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}