Palomar Insurance Holdings, the speciality US insurer that offers largely catastrophe exposed property products, has lifted the top of its reinsurance tower to provide as much as $3.53 billion of earthquake reinsurance protection at the renewals, with multi-year catastrophe bonds set to provide 33% of that total for 2025.As in prior years, protecting itself against major earthquake events in its home state of California and other quake exposed regions of the US is the focus of Palomar’s reinsurance tower.So it’s not surprise that all of its catastrophe bonds under the Torrey Pines Re program are also providing coverage for that peril.For its reinsurance renewal for the 2025-2026 year, Palomar has added $455 million in incremental limit, to lift its tower to the new $3.53 billion level, up from .

Helping in that effort was the sponsorship of Palomar’s largest catastrophe bond yet in 2025, the $525 million that came to market in late April.CEO of Palomar, Mac Armstrong, had said at the time that adding this large cat bond would assist the insurer when it came to its reinsurance renewal this year, .As well as the $3.53 billion of quake reinsurance limit, Palomar also has a further $100 million available for US hurricane losses in 2025.

The earthquake retention is stable at $20 million at this year’s reinsurance renewal, but Palomar has lowered its hurricane retention to $11 million from $15.5 million.For the insurer, the renewed reinsurance tower covers Palomar’s 1:250-year peak zone Probable Maximum Loss.Of the $3.53 billion of earthquake reinsurance limit available, some $1.15 billion, or around 33%, will come from the catastrophe bond market over the next year.

Right now .But with $275 million set to mature in early June, this will reduce.Across the reinsurance tower Palomar cites over 100 participants, from the traditional reinsurance market and insurance-linked securities (ILS) investors.

For the June 1st renewal this year, Palomar also added a standalone excess of loss reinsurance tower for Hawaii hurricane policies issued by Laulima Exchange for the first time, providing per occurrence coverage up to $735 million with a retention of $1.5 million.“We are very pleased with the outcome of our June 1 excess of loss placement and remain grateful for the continued support of our broad and diverse reinsurance panel,” explained Mac Armstrong, Palomar’s Chairman and Chief Executive Officer.“Beyond the risk adjusted rate decrease of approximately 10%, this renewal saw Palomar procure incremental earthquake limit to support our growth, maintain our earthquake event retention despite significant year-over-year exposure growth, reduce our wind event retention to $11 million, upsize our Torrey Pines Re catastrophe bond and successfully execute our first standalone Laulima excess of loss treaty.

“Importantly these initiatives were consummated at attractive prices that should enhance our earnings prospects for the remainder of 2025 and the first half of 2026.As a result, we are raising our full-year 2025 adjusted net income guidance range to $195 million to $205 million from the previously indicated range of $186 million to $200 million.” Palomar’s Chief Risk Officer, Jon Knutzen, added, “We are grateful for the strong and diversified support we received from the reinsurance market.The continued confidence from both incumbent and new partners is a testament to the strength of our portfolio and the disciplined execution of our risk transfer strategy.

The June 1 placement further enhances the stability and predictability of our results, positioning us to deliver increased value to our shareholders over the long term.We appreciate the collaboration and partnership that made this successful outcome possible.” You can read all about the recent catastrophe bond and every deal issued since 1996 in the Artemis Deal Directory...

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