Travelers adds limit at 1.1, ups co-participation to go $2.5bn higher

Travelers corporate catastrophe excess of loss reinsurance treaty rose in limit from $5.5 billion to $8.0 billion while holding retentions flat at $3.5 billion, but increasing co-participation up a more intricately layered reinsurance tower. 

Versus prior year coverage of 100% of $2 billion in losses above the $3.5 billion retention, the new treaty covers up to $3.525 billion of $4.5 billion of qualifying losses above the retention. That starts at 20% of the first $500 million, proceeds to 80% of the next $1 billion, 95% of the next $2.5 billion and 50% of the final half billion. 

The treaty covers accumulation losses from one or multiple occurrences, with a $100 million deductible for each separate occurrence, Travelers said in wording to match the prior year statement. 

Travelers additionally embellished the long-ish series of secondary treaties it renews for specific regions and perils with a 'personal insurance hurricane catastrophe excess of loss reinsurance treaty' which had not been present on the prior year list. 

Beyond those treaties, cat bonds via unit Long Point Re remain in place.

In the prior year renewal, Travelers had not been so lucky against the surmounting market storm. Travelers admitted to having lifted retentions on the core corporate cat XoL treaty by half a billion, then tacitly admitted to having scuttled its 'underlying property aggregate catastrophe excess of loss reinsurance treaty' also typically renewed at 1.1.

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