Travelers increases Long Point cat bond coverage, renews Northeast property cat XoL on unchanged terms at July 1

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US primary insurer Travelers increased its catastrophe bond coverage in 2026 to a staggering $750 million, while the carrier’s Northeast Property Catastrophe Excess-of-Loss Reinsurance July 1st renewal remains unchanged from the prior year in terms of coverage and retention.

As a reminder, Travelers’ $575 million  Long Point Re IV Ltd. (Series 2022-1) catastrophe bond expired back in May.

However, the company then made its return to the cat bond market in the same month, and managed to secure its eighth and largest cat bond to date, the $750 million Long Point Re IV Ltd. (Series 2026-1) issuance.

The cat bond provides the carrier with single occurrence coverage through May 24th, 2030, for certain property losses on specified lines of business from tropical cyclones, earthquakes, severe thunderstorms or winter storms from Virginia to Maine.

Travelers also noted that the attachment point and maximum limit will be reset annually to adjust the expected loss of the layer within a predetermined range.

From May 25th, 2026, through and including May 24th, 2027, the cat bond provides Travelers with up to $750 million part of $1 billion of coverage, subject to a $2.85 billion retention.

As mentioned, Travelers’ Northeast Property Catastrophe Excess-of-Loss Reinsurance Treaty renewal at July 1st 2026 remains unchanged from the prior year in terms of coverage and retention.

For 2026-2027, the Northeast Property Catastrophe Excess-of-Loss Reinsurance Treaty is set to provide the carrier with $1 billion of coverage for losses arising from a single occurrence and allows for one reinstatement, subject to a $2.75 billion retention.

Like last year, the coverage is provided on an all perils basis, including but not limited to hurricanes, tornadoes, hail storms, earthquakes, wildfires, winter storms and/or freeze losses (including coverage for terrorism events in limited circumstances).

Also the same, is that the reinsurance protection for cyber events applies only in limited circumstances, and coverage for communicable disease and nuclear, biological and radiological terrorism attacks is excluded from this treaty.

At 2025’s mid-year renewal, Travelers placed $500 million of coverage as part of a $1 billion Personal Insurance Catastrophe Excess-of-Loss Reinsurance Treaty. However, the carrier has confirmed that this was not renewed this year.

In addition to the firm’s catastrophe bond and Northeast Property Catastrophe Excess-of-Loss Reinsurance Treaty, Travelers’ Corporate Catastrophe Excess-of-Loss Reinsurance Treaty, Business Insurance Earthquake Catastrophe Excess-of-Loss Reinsurance Treaty, and Other International Reinsurance Treaties remain in effect.

Earlier this year, Travelers added an additional $1 billion lower layer to its catastrophe excess-of-loss (XoL) reinsurance treaty at the January 1st renewals, reducing the retention by an equivalent amount to $3 billion while also securing $4.675 billion of coverage above that too.

Read about Travelers second-quarter 2026 results over at our sister publication Reinsurance News.

Travelers increases Long Point cat bond coverage, renews Northeast property cat XoL on unchanged terms at July 1 was published by: www.Artemis.bm
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