American Coastal renews core cat reinsurance program with $1.676bn coverage

American Coastal Insurance Corp. (ACIC) has renewed its core catastrophe reinsurance program (Core CAT) for 2025/26, purchasing approximately $1.676 billion of occurrence-based limit in the aggregate, an increase of $62.4 million, or 3.9%, from 2024/25.

According to ACIC, the renewed Core CAT program, facilitated through its insurance subsidiary AmCoastal, covers perils including windstorms named or numbered by the National Hurricane Center, specifically as they impact ACIC’s exposure in Florida. As previously reported, ACIC placed several complementary reinsurance programs earlier in the year, including an all-other perils catastrophe excess of loss program and a catastrophe aggregate excess of loss program, both effective January 1, 2025, as well as an automatic facultative program for non-catastrophe losses, effective February 1, 2025.

ACIC disclosed that the renewed program has an occurrence-based structure with a first event limit of $1.33 billion, an increase of $68.4 million, or 5.4%, from the 2024/25 Core CAT program.

It reportedly has sufficient coverage for approximately a 1-in-201-year event, and in excess of a 1-in-100-year event followed by a 1-in-50-year event in the same season.

The renewed program has first event retention of up to $29.75 million, with $14.0 million retained by AmCoastal and $15.75 million retained by its captive, an increase of $9.25 million from the $20.5 million in the 2024/25 Core CAT program.

Second event retention is up to $18.5 million, assuming a 1-in-100-year event followed by a 1-in-50-year event in the same season, up $5.5 million from $13 million in the 2024/25 Core CAT program.

“For the Florida Hurricane Catastrophe Fund (FHCF) Reimbursement Contract effective June 1, 2025, ACIC elected 90% coverage. The total mandatory FHCF layer is projected to provide approximately $534.1 million of total Florida-only coverage, attaching at $299.9 million and exhausting at $834 million, which inures to the benefit of the open market catastrophe reinsurance program,” ACIC added.

The total provisional, subject to change based on actual exposure at September 30, 2025, cost of ACIC’s 2025/26 catastrophe excess of loss reinsurance programs, excluding potential reinstatement premium, is approximately $201.85 million, a risk-adjusted open market rate decrease of 12.2% from the 2024/25 Core CAT program.

Meanwhile, the maximum reinstatement/additional premium exposure, assuming all layers that reinstate are exhausted from a first event, is $5.9 million, a decrease of $10.5 million, or 64%, from the 2024/25 Core CAT Program.

In related news, ACIC also has $400 million of outstanding catastrophe bond-backed reinsurance, which you can read more about in the Deal Directory of our sister publication, Artemis.

ACIC is featured in Artemis’ catastrophe bond sponsor leaderboard here.

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