American Integrity Insurance secures $2.99 billion reinsurance coverage

American Integrity Insurance Group Inc. (NYSE: AII) announced it has completed placement of its 2026-2027 catastrophe excess of loss reinsurance program for its subsidiary American Integrity Insurance Company, effective June 1, 2026.

The Florida-based property insurer increased its total third-party excess of loss reinsurance limit by $409.1 million, or 15.8%, to $2.99 billion compared to the 2025 treaty. The program provides $2.25 billion in third-party coverage for a single catastrophic event.

The company expects to pay $430 million to $440 million in consolidated catastrophe reinsurance premiums ceded to third parties for the 2026 treaty year. The first event tower maintains a 1-in-130 year return period, consistent with the previous year's program.

"This year's placement benefits from meaningful risk-adjusted rate reductions at the upper end of a US property catastrophe market that was publicly expected to be priced down 15-20% for June 1 renewals," said Jon Ritchie, President of American Integrity.

The company reduced net retention exposure despite an estimated 19% growth in peak season in-force exposure. The first event retention remains at $35 million, while the second event retention decreases from $35 million to $20 million for named storms. In a four-event hurricane season, aggregate retention decreases from $95 million to $75 million.

The $3 billion placement combines traditional reinsurers ($1.65 billion), Insurance Linked Securities investors, the Florida Hurricane Catastrophe Fund ($572 million), and the company's captive reinsurer. Traditional reinsurance coverage increased from $1.1 billion last year.

The program includes $565 million in catastrophe bonds issued in 2025 expiring in May 2027, plus an additional $260 million in catastrophe bonds issued in 2026 expiring in May 2029. All participating reinsurers maintain A- or better ratings from A.M. Best or provide full collateral.

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