Major U.S. insurer Traveler’s Northeast property catastrophe excess losses reinsurance treaty was renewed on July 1, 2026, with the same coverage and retention as the previous year, while the carrier decided not to renew its personal lines catastrophe excess losses reinsurance treaty and to obtain additional reinsurance from the capital markets.
From 2026 to 2027, the Northeast Property Catastrophe Excess Loss Reinsurance Treaty provides the company with $1 billion in single-occurrence loss coverage and allows for one recovery subject to the retention of $2.75 billion.
This is unchanged from the 2025 and 2024 renewals, when Travelers increased coverage under the treaty by $150 million while increasing retention by $250 million from the 2023 arrangement.
Also unchanged is the fact that coverage is provided based on all risks, including but not limited to hurricane, tornado, hail, earthquake, wildfire, winter storm and/or freeze loss (including terrorism event coverage under limited circumstances).
As last year, reinsurance cover for cyber incidents is only available in limited circumstances, while coverage for communicable diseases and nuclear, biological and radiological terrorism attacks is excluded from the treaty.
The treaty is in effect from July 1, 2026, to June 30, 2027, and covers territory from Virginia to Maine.
Travelers had $500 million insured in a $1 billion personal lines catastrophe excess loss reinsurance treaty when it came up for renewal in July 2025, but the company revealed it had not renewed it this year.
Back in May, the insurer’s $575 million Long Point Re IV Ltd. (Series 2022-1) cat bond matured, but Travelers returned to the cat bond market that same month with its eighth and largest cat bond tranche to date, the $750 million Long Point Re IV Ltd. (Series 2026-1) deal.
This capital markets-backed source of reinsurance provides airlines with single, multi-year coverage covering certain property losses in specific lines of business, including tropical cyclones, earthquakes, severe thunderstorms or winter storms from Virginia to Maine. Travelers explains, “The attachment points and maximum limits are reset annually to adjust the expected loss of the layer to a predetermined range.”
From May 25, 2026 to May 24, 2027 (inclusive), the catastrophe bonds provide up to $750 million of the $1 billion in coverage and retain $2.85 billion.
Cat bond coverage is limited to specific property coverage specified in the individual lines, so the $750 million in added reinsurance may be part of the reason why the individual lines’ catastrophe excess loss reinsurance treaty was not renewed.
In addition to the Cat Bonds and Northeast Property Catastrophe Excess Loss Reinsurance Treaties, the Travelers Corporate Catastrophe Excess Loss Reinsurance Treaty, the Commercial Insurance Earthquake Catastrophe Excess Loss Reinsurance Treaty and other international reinsurance treaties remain in effect.
In January, we reported that Travelers updated its 2026 catastrophe excess losses reinsurance program, significantly reducing retention and adding a new lower tier.
Travelers reported mid-year reinsurance renewal results as well as second-quarter results, which included an increase in core income to $2.16 billion on the back of lower catastrophe losses, higher net favorable reserve development in the prior year, higher net investment income and higher underlying underwriting earnings.
