After successfully pricing its latest catastrophe bonds, the Texas Windstorm Insurance Association (TWIA) now needs approximately $1.23 billion in new reinsurance to meet risk transfer requirements through 2026, our insurance-linked securities (ILS) sister publication Artemis reports.
We reported in February that the TWIA board set a $4.3 billion fiftieth PML for the 2026 storm season, and an April 2026 board meeting confirmed that the association was working to secure $2.28 billion in reinsurance protection to fill its risk transfer towers, in addition to approximately $2 billion in statutory funding sources.
TWIA has now successfully priced its new Alamo Re Ltd. (Series 2026-1) catastrophe bonds, securing $750 million in capital markets-backed reinsurance, Artemis reports.
The current amount of TWIA’s active catastrophe bond risk transfers is $2.45 billion, the Artemis deal catalog shows, although $900 million of that is scheduled to mature in June 2026, meaning this protection will not be available during the upcoming storm season.
In addition, Artemis understands that TWIA will conduct some early catastrophe bond redemptions, including $1 billion of Class A and Class B notes in the Alamo Re Ltd. (Series 2024-1) catastrophe bond issuance, and $250 million of Class A notes in the Bluebonnet Re Ltd. (Series 2025-1) transaction.
Therefore, this means that TWIA still has $300 million in reinsurance coverage for the 2026 storm season on outstanding Bluebonnet Re Class B and C notes, which, combined with the $750 million in cat bond risk transfer from the association’s new Alamo Re 2026-1 issuance, indicates that $1.05 billion of TWIA’s $2.28 billion in risk transfer needs is guaranteed and provided by the cat bond market.
Data shows that TWIA currently requires an additional US$1.23 billion in reinsurance to meet risk transfer needs for the 2026 typhoon season. It’s unclear if the funding will be sourced solely from the traditional reinsurance market or if TWIA will sponsor another cat bond in June, which is not unheard of.
Back in April, ahead of its latest cat bond pricing and known size, TWIA said it was issuing about $1.98 billion in new insurance, noting that it expected the funding to come from a combination of traditional reinsurance and cat bonds.
