Global insurer Liberty Mutual Group updated its property catastrophe reinsurance program on January 1, 2026, renewing $2.75 billion in occurrence limits that ensure more than $1 billion in retention, as well as $500 million in tail total coverage and $100 million in total protection “closer to income volatility protection.”
In 2026, core North American real estate generation tower retention was flat from the previous year, while tower tops only stretched to $3.75 billion this year, compared with $3.8 billion in 2025, as Liberty Mutual elected to reduce the generation limit by $500 million.
In this year’s renewal, Liberty enhanced coverage across all risks within the core tower, with an initial $1.5 billion available on an all-risks basis through 2025.
Therefore, all market tiers for the 2026 update are developed on an all-risk basis, with a small portion of the top tier limited to hurricane and earthquake events, with one recovery.
Last year, the company underwrote larger, $1.3 billion worth of storm and earthquake-specific coverage, above its $1.5 billion all-risks limit.
“We successfully structured our North American real estate catastrophe program on attractive terms, maintaining $1 billion of occurrence attachment points while enhancing coverage for all risk placements within the core tower, improving terms and conditions, and selecting multi-year placements,” Liberty Mutual Chief Financial Officer Julie Haase said during the company’s recent earnings call. “We also continue to have an overarching property catastrophe treaty to help prevent the frequency and severity of losses.”
In 2026, Liberty has elected to increase the add-on points for its total reinsurance protection to $3.15 billion, compared with $2.4 billion in 2025. This year, however, Liberty disclosed an additional $100 million in total reinsurance protection “closer to income fluctuation protection,” which appears to be the Class C tranche of its Mystic Re IV Ltd. (Series 2025-1) cat bonds.
The other two tranches of the 2025 catastrophe bond issue provide event coverage and are therefore part of the core property event tower. Last December, Liberty sponsored Mystic Re IV Ltd. (Series 2026-1), a $150 million deal that, as pictured below, covers retaining a portion of the tower above, extending to the top of the project. Liberty explains that Mystic Re cat bonds contain certain specified risks and are not reinstateable.
“2026 represents the strongest capital position in our company’s history. We will manage this capital base in the best interests of current and future policyholders,” Haase said.
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