The 2026-2027 program combines traditional reinsurance, cat bonds and FHCF coverage. PGR retains $75M for a first Florida event. Alpha Score 63.
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The Progressive Corporation renewed its property catastrophe reinsurance program for the 2026-2027 year, effective June 1, 2026. The tower provides up to $2.19 billion of coverage for a first event in Florida and $1.85 billion for a first event elsewhere. The program blends traditional reinsurance and catastrophe bonds, with additional coverage from the Florida Hurricane Catastrophe Fund (FHCF).
Progressive said the program is designed to reduce overall risk and protect capital against catastrophe costs. It covers personal property and certain business owners exposures, including hurricanes, severe convective storms, winter weather, and wildfire.
The company retains $75 million of losses and allocated loss adjustment expenses for a first Florida event. For a first event elsewhere, the retention is $300 million.
The Florida-only excess-of-loss layer sits at $225 million above the $75 million retention, after FHCF coverage. The FHCF contracts provide an estimated $112.6 million, representing 90% of $125.1 million, above a $71.7 million retention.
Outside Florida, Layers 1 through 3 provide a combined $750 million of coverage above the $300 million retention. Layer 1 offers $150 million. Layer 2 provides $250 million. The third layer adds $350 million. Each layer carries one reinstatement. Progressive said no additional reinstatement premium is owed because of prepaid reinstatement or reinstatement premium protection.
Layers 4 through 6 cascade, attaching at $1.05 billion depending on multiple-loss scenarios. Layer 4 provides $200 million through the Bonanza Re Ltd 2024-1 Class C cat bond. Layer 5 provides $400 million through a mix of traditional reinsurance and cat bond. Layer 6 provides $330 million, including $75 million from the Bonanza Re Ltd Series 2024-1 Class B cat bond and $255 million from traditional reinsurance. These layers carry no reinstatement.
The program also includes a $175 million shared “Top & Aggregate” limit for named storms, effective through December 31, 2026. The occurrence coverage sits above $1.05 billion. The aggregate coverage provides $175 million above a $335 million retention. The two coverage parts share the same limit.
Alongside the June renewal, Progressive detailed its annual Property Catastrophe Aggregate Reinsurance program, which renewed January 1, 2026. It provides $237.5 million of aggregate coverage above a $550 million retention through its first two layers, followed by $62.5 million above a $750 million retention.
Progressive (PGR) carries an Alpha Score of 63 out of 100, a “Moderate” rating in the Financials sector. The PGR stock page provides further detail.
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