American Coastal Insurance Corporation
05/15/2026 | Press release | Distributed by Public on 05/15/2026 14:13
Material Event (Form 8-K)
Item 8.01 Other Events.
Effective June 1, 2026, American Coastal Insurance Corporation (ACIC), through its insurance subsidiary American Coastal Insurance Company (AmCoastal), renewed its core catastrophe reinsurance program (Core CAT). Highlights include the following:
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For 2026/27, ACIC purchased approximately $1.918 billion of occurrence-based limit in the aggregate, an increase of $241.5 million, or 14.4%, from the $1.676 billion of occurrence-based limit in the aggregate purchased for the 2025/26 Core CAT program.
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Placed $200 million of new multi-year Catastrophe Bond limit in 2026 in two $100 million tranches, one below and alongside the Florida Hurricane Catastrophe Fund (FHCF) layer and one at the top of the program.
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The top layer, which includes a $100 million Catastrophe Bond tranche and $100 million of open market limit, cascades to $50 million in a multiple event scenario. This is in addition to $235 million of limit sitting below this layer, which also cascades to $50 million, bringing the total cascading limit for the 2026/27 Core CAT program to $435 million.
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Placed a multi-year external quota share at a 15.0% cession rate with an unaffiliated reinsurer holding an AM Best rating of A+ providing coverage for all catastrophe perils and attritional losses, subject to defined occurrence and aggregate limitations.
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Occurrence-based structure with estimated first event limit of $1.68 billion (285.7 YR RT in AIR v.13 LTwDS + 10% LAE), an increase of $349.5 million, or 26.3%, from the 2025/26 Core CAT program. Sufficient coverage for both a single event and multi event according to Catastrophe models approved by the Florida Office of Insurance Regulation.
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First event retention of up to $49 million (15.4% of stockholders' equity as of December 31, 2025), with $26.5 million retained by AmCoastal and $22.5 million retained by the affiliated captive, an increase of $19.25 million from the $29.75 million (12.6% of stockholders' equity as of December 31, 2024) in the 2025/26 Core CAT program. The first event retention figures include a $6.5 million net retention from the excess and surplus (E&S) assumed portfolio.
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Second event retention of up to $25 million (7.9% of stockholders' equity as of December 31, 2025) assuming a 1-in-100-year event followed by a 1-in-50-year event in the same season, up $6.5 million from $18.5 million (7.9% of stockholders' equity as of December 31, 2024) in the 2025/26 Core CAT program. The second event retention figures also include a $6.5 million net retention from the E&S assumed portfolio.
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All catastrophe perils are covered, including windstorms named or numbered by the National Hurricane Center.
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For the FHCF Reimbursement Contract effective June 1, 2026, ACIC elected 90% coverage. The total mandatory FHCF layer is projected to provide approximately $571.5 million of total Florida-only coverage attaching at $363.7 million and exhausting at $998.7 million, which inures to the benefit of the open market catastrophe reinsurance program.
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Excluding the unaffiliated 15.0% quota share, the total provisional cost of ACIC's 2026/27 catastrophe excess of loss reinsurance programs, excluding potential reinstatement premium, is approximately $179.5 million (subject to change based on actual exposure at September 30, 2026), which compares to $201.85 million, or (11.1)%, to the 2025/26 Core CAT program.
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The maximum reinstatement/additional premium exposure, assuming all layers that reinstate are exhausted from a first event, is $0.9 million, a decrease of $(4.9) million, or (84.0)% from the 2025/26 Core CAT Program.
American Coastal Insurance Corporation published this content on May 15, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on May 15, 2026 at 20:13 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]