American Coastal Insurance Company (AmCoastal) has successfully renewed its all other perils reinsurance arrangement for 2025 and added a new $40 million catastrophe aggregate excess of loss agreement.A year ago, an all other perils catastrophe excess of loss reinsurance agreement that provided the company up to $100 million of limit.For 2025, the all other perils catastrophe excess of loss agreement will provide the insurer up to $90 million of occurrence limit excess of the same $10 million attachment point to limit to lower American Coastal’s losses from catastrophe events other than named windstorms and earthquakes.The 2025 renewal of occurrence catastrophe cover for perils other than named windstorms and earthquakes is reported to have cost AmCoastal approximately $11.9 million, which the insurer said reflected a risk adjusted decrease of -8% year-over-year.

After the retention, the 2025 reinsurance provides AmCoastal roughly $88.2 million of cover for a first event and $88.2 million for a second event, so $176.4 million in the aggregate.The insurer noted this is an aggregate increase of $4.4 million or 2.6% year-over-year.As well as that, the insurer noted the effective attachment point for the catastrophe XoL occurrence reinsurance agreement decreased $4 million, or 28.6% year-over-year, from $14 million to $10 million.

Recall that, on the per-occurrence side, AmCoastal had sponsored in December 2024 a $200 million catastrophe bond that will provide the company just over three-year’s of fully-collateralized Florida named storm reinsurance protection.In addition, at its 2025 reinsurance renewal, AmCoastal said it has purchased a new catastrophe aggregate excess of loss reinsurance cover, that will protect the companies in-force, new and renewal business.From January 1st 2025, the new aggregate reinsurance arrangement will provide the insurer $40 million of aggregate limit, with a $20 million per occurrence cap, excess of zero after the $40 million annual aggregate deductible has been exceeded.

It will limit AmCoastal’s from all catastrophe loss events, including named windstorms, severe convective storms and winter storm events for the full calendar year of 2025, for a cost of around $6.6 million..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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