US primary insurer Travelers has renewed substantially the same of its larger catastrophe reinsurance arrangements at the mid-year renewal season, although with some changes and perhaps a non-renewal of smaller treaties, while for the second year running the company has lifted its catastrophe bond attachment higher up the tower again.Earlier this year, , with a higher attachment.Last July, after the mid-year 2024 reinsurance renewals, .At the same time Travelers lifted the attachment point for its $575 million issuance from May 2022 by just over $300 million.

Now, at the mid-year of 2025, Travelers has renewed substantially the same catastrophe reinsurance arrangements as last year, but further lifted the cat bond’s attachment point at its 2025 annual reset.Travelers has renewed its Northeast Property Catastrophe Excess-of-Loss Reinsurance to provide the same $1 billion of coverage, from the same $2.75 billion retention to run through the end of June 2026.The company notes that, “Recoveries under the catastrophe bonds (if any) would be first applied to reduce losses subject to this treaty.” Also renewed for the next year is Travelers Personal Insurance Hurricane Catastrophe Excess-of-Loss Reinsurance Treaty that covers specific named storm and hurricane exposures across United States coastal states from Texas to Maine, but excluding Florida.

For the 2024 hurricane season this reinsurance treaty was renewed to provide $500 million of cover across a $1 billion layer for a single event, subject to a higher $2 billion retention.For 2025, this treaty has been renewed at substantially the same terms, as far as we can see.One notable change to this renewal is that Travelers has not reported that its Middle Market Earthquake Catastrophe Excess-of-Loss Reinsurance Treaty has been renewed.

This treaty was renewed a year ago and covered a one-year term to June 2025.So it appears the company may have non-renewed it this year, perhaps due to its other treaties having all grown to provide more reinsurance protection in recent years.The companies Canadian Property Catastrophe Excess-of-Loss Reinsurance Treaty, has been adjusted to provide more coverage, now attaching at C$100 million but covering all losses up to C$400 million, where as a year ago it only covered a 50% share of losses between C$100 million and C$200 million, but then 100% of losses up to C$500 million.

So some adjustments there for this smaller treaty, which now covers more losses from the retention up.Onto the Long Point Re catastrophe bond, which a year ago saw its attachment point lifted to provide its $575 million of cover after a $2.79 billion retention, up from a $2.48 billion retention the year prior.Now, after the mid-year 2025 annual reset, Travelers Long Point Re cat bond will attach from a $2.89 billion retention.

Travelers has continued to adjust its catastrophe reinsurance, growing its larger and more expansive treaties, while making smaller ones more focused, while the cat bond remains a core component of its arrangements...All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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