PGR · 8-K · 20260810PR000310
Catastrophe Reinsurance Program
PROGRESSIVE CORP/OH/ · 2026-08-10 · Importance 64 · Surprise 42 · In source text
Progressive completed its 2026–2027 Property Catastrophe per-occurrence reinsurance renewal, covering personal Property and certain business owners property (BOP) exposures from hurricanes, severe convective storms, wildfires and other catastrophe perils. The program provides net coverage limits of $2.19 billion for a first event in Florida and $1.85 billion for a first event outside Florida, above retention thresholds of $75 million and $300 million, respectively. Coverage is diversified across traditional reinsurers, catastrophe bonds, insurance-linked securities markets and the Florida Hurricane Catastrophe Fund, with aggregate programs providing an additional $300 million of coverage above aggregate retentions of $550 million and $750 million. Progressive also maintains separate reinsurance for its boat, transportation network company, BOP and workers’ compensation products, including up to $38 million per workers’ compensation occurrence and collateralization requirements exceeding 100% for TNC recoverables.
Key facts
- Coverage limits, net of retention but including the shared limit coverage discussed below, are $2.19 billion for a first event in Florida and $1.85 billion for a first event outside of Florida. source
- Layer 4, Bonanza Re Ltd 2024-1 Class C Cat bond, provides $200 million of coverage in excess of $1.05 billion and is effective June 1, 2026 – May 31, 2027. source
- Layer 6.A, Bonanza Re Ltd Series 2024-1 Class B Cat Bond, provides $75 million (22.73% of $330 million) of coverage in excess of $1.05 billion and is effective June 1, 2026 – May 31, 2027. source
- Aggregate XOL Layer 2 provides $125 million of total coverage, net of retention, through Bonanza Re Ltd Series 2025-1 Class A bonds. source
- Beginning in 2026, Progressive has an occurrence XOL program covering its special lines boat product from January 1, 2026, through December 31, 2026 that provides $150 million of coverage for named windstorms in excess of a $225 million per event retention. source
- The Property per Occurrence XOL program has a retention threshold of $300 million of losses and allocated loss adjustment expenses (ALAE) for the first event outside of Florida and $75 million for the first event in Florida. source
- Florida-Only XOL Layer provides $225 million of coverage in excess of a $75 million retention threshold and after FHCF coverage. source
- FHCF contracts provide an estimated $112.6 million (90% of $125.1 million) in excess of a $71.7 million retention of indemnification for qualifying Property losses caused by National Hurricane Center declared hurricanes. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | committed | — | Coverage limits, net of retention but including the shared limit coverage discussed below, are $2.19 billion for a first event in Florida… |
| assets | positive | committed | — | Coverage limits, net of retention but including the shared limit coverage discussed below, are $2.19 billion for a first event in Florida… |
| assets | positive | committed | — | Layer 4, Bonanza Re Ltd 2024-1 Class C Cat bond, provides $200 million of coverage in excess of $1.05 billion and is effective June 1,… |
| assets | positive | committed | — | Layer 6.A, Bonanza Re Ltd Series 2024-1 Class B Cat Bond, provides $75 million (22.73% of $330 million) of coverage in excess of $1.05… |
| assets | positive | committed | — | Aggregate XOL Layer 2 provides $125 million of total coverage, net of retention, through Bonanza Re Ltd Series 2025-1 Class A bonds. |
| assets | positive | committed | — | Beginning in 2026, Progressive has an occurrence XOL program covering its special lines boat product from January 1, 2026, through… |
| liability | negative | committed | — | The Property per Occurrence XOL program has a retention threshold of $300 million of losses and allocated loss adjustment expenses (ALAE)… |
| liability | negative | committed | — | The Property per Occurrence XOL program has a retention threshold of $300 million of losses and allocated loss adjustment expenses (ALAE)… |
| assets | positive | committed | — | Florida-Only XOL Layer provides $225 million of coverage in excess of a $75 million retention threshold and after FHCF coverage. |
| assets | positive | committed | — | FHCF contracts provide an estimated $112.6 million (90% of $125.1 million) in excess of a $71.7 million retention of indemnification for… |
| assets | positive | committed | — | Layer 2 provides $250 million of coverage in excess of $450 million with a combination of single-year and multi-year agreements effective… |
| assets | positive | committed | — | Layer 3 provides $350 million of coverage in excess of $700 million with a combination of single-year and multi-year agreements effective… |