Florida-based American Coast Insurance Company (ACIC) updated its core catastrophe reinsurance program (Core CAT) for 2026/27 to purchase a total of approximately $1.918 billion in event-based limits, an increase of $241.5 million, or 14.4%, from the previous year.
For the new Core CAT program, ACIC, driven through its insurance subsidiary AmCoastal, leverages changing market dynamics by integrating alternative capital, securing external quota shares and optimizing its tiers to build strong protection against single and multi-event hurricane seasons.
Earlier this year, ACIC renewed the 2026 All Other Risks Catastrophic Excess Loss Agreement (AOP CAT Agreement), providing excess casualty limits of up to $95.6 million on a $10 million add-on basis to limit insurers’ losses from catastrophe events other than specified storms and earthquakes.
The 2026/27 scheme expands protection with event-based limits of $1.68 billion, an increase of $349.5 million, or 26.3%, over the 2025/26 core CAT scheme.
It also has up to $49 million in first-campus retention, with $26.5 million retained by AmCoastal and $22.5 million retained by affiliated captives, an increase of $19.25 million from the $29.75 million in the 2025/26 core CAT plan.
The first event retention figure includes $6.5 million in net retention from the excess and surplus (E&S) hypothetical portfolio, according to ACIC.
Assuming a once-in-100-year event is held in the same season, followed by a once-in-50-year event, the retention amount for the second event would be up to $25 million, an increase of $6.5 million from the $18.5 million planned for the 2025/26 Core CAT.
The second active retention figure also includes $6.5 million of net retention in E&S’s hypothetical portfolio.
In an effort to diversify its capital structure, ACIC successfully issued $200 million in new 2026 multi-year catastrophe bonds.
The funding is divided into two tranches of $100 million each, one below and next to the Florida Hurricane Catastrophic Fund (FHCF) tier and one on top of the program.
ACIC added: “For the FHCF reimbursement contract effective June 1, 2026, ACIC has elected 90% coverage. The mandatory FHCF layer is expected to provide approximately $571.5 million in total Florida coverage, with an add-on amount of $363.7 million and a depletion amount of $998.7 million, benefiting open market catastrophe reinsurance programs.”
In addition, maximum recovery premium exposure has been reduced by 84% compared to the 2025/26 core CAT plan, to just $900,000.
According to ACIC, all disaster hazards are covered, including storms named or numbered by the National Hurricane Center.
