Travelers Chief Financial Officer Dan Frey said the company chose not to renew its personal lines catastrophe excess of losses (XOL) reinsurance treaty on July 1 because its enhanced enterprise-level catastrophe reinsurance program, which it entered into on January 1, provides a “more attractive way” to obtain needed reinsurance protection.
“On July 1, we renewed our Northeast Realty Cat XOL treaty, which continues to provide $1 billion in casualty coverage above the point of attachment of $2.75 billion,” Frey said on Friday during Travelers’ second-quarter 2026 earnings call.
As we reported, the major U.S. insurer chose not to renew its Personal Lines Catastrophe XOL Reinsurance Treaty purchased in 2024 and 2025 on July 1.
In this regard, Frey pointed out, “Recall that when we renewed the general corporate catastrophe treaty on January 1 of this year, we reduced the attachment point from $4 billion to $3 billion.”
This change reduced travelers’ net exposure to medium-sized catastrophic events, and reinsurance was implemented earlier.
Frey continued, “The efficiencies of an all-risk enterprise-wide program are a more attractive way to get the reinsurance coverage we want.”
During Travelers’ second-quarter 2026 earnings call, Frey also commented on the expansion of catastrophe bond protections on July 1, saying: “We replaced the catastrophe bonds maturing in May with new catastrophe bonds, increasing the bond size from $575 million to $750 million and slightly reducing reservations.”
Learn more about Travelers’ Long Point Re IV Ltd. (Series 2026-1) Cat Bonds, as well as many others, in our sister publication Artemis’ Deal Directory.
The directory contains detailed information on more than 1,000 catastrophe bonds and related insurance-linked securities (ILS) transactions issued since the market’s inception in the mid-1990s.
