The Progressive Corporation has revealed the particulars of its 2026-2027 Property Catastrophe per Occurrence Reinsurance program, which renewed June 1, 2026, combining traditional reinsurance, cat bonds and Florida Hurricane Catastrophe Fund (FHCF) protection across a tower providing up to $2.19 billion of coverage for a first event in Florida and $1.85 billion for a first event elsewhere.
The renewed program covers personal property and certain business owners property exposures against catastrophe losses, including hurricanes, severe convective storms, named storms, fire following earthquake, severe winter weather and wildfire.
Progressive said the program is intended to reduce overall risk and protect capital against catastrophe costs. It comprises privately placed reinsurance, cat bond transactions and FHCF coverage, with a mixture of single-year and multi-year contracts.
As you can see from the image of the firm’s reinsurance tower above, Progressive retains $75 million of losses and allocated loss adjustment expenses for a first Florida event and $300 million for a first event elsewhere.
The Florida-only XOL layer provides $225 million excess of the $75 million retention and after FHCF coverage. The FHCF contracts provide an estimated $112.6 million, representing 90% of $125.1 million, excess of a $71.7 million retention.
Layers 1-3 provide a combined $750 million of coverage above the $300 million retention. Layer 1 provides $150 million, Layer 2 $250 million and Layer 3 $350 million. Each carries one reinstatement, with Progressive saying no additional reinstatement premium is owed due to prepaid reinstatement and/or reinstatement premium protection.
Layers 4-6 cascade down to attach at $1.05 billion depending on potential multiple-loss scenarios. Layer 4 provides $200 million through the Bonanza Re Ltd 2024-1 Class C cat bond, while Layer 5 provides $400 million through a combination of traditional reinsurance.
Layer 6 provides $330 million, including $75 million from the Bonanza Re Ltd Series 2024-1 Class B cat bond and $255 million from traditional reinsurance. Layers 4-6 do not carry reinstatement.
The program also includes a $175 million shared “Top & Aggregate” limit for named storms, effective through December 31, 2026. Its occurrence coverage sits excess of $1.05 billion, while its aggregate coverage provides $175 million excess of a $335 million retention, with the two coverage parts sharing the same limit.
Alongside the June renewal, Progressive provided more information on its annual Property Catastrophe Aggregate Reinsurance program, which renewed January 1, 2026.
This provides $237.5 million of aggregate coverage above a $550 million retention through its first two layers, followed by a further $62.5 million above a $750 million retention.
Readers can find further details on the cat bonds mentioned above in the Deal Directory of our sister publication, Artemis, which offers extensive search and filtering tools and covers more than 1,000 cat bonds and related ILS transactions issued since the market began in the mid-1990s.
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