US insurer Progressive expanded its aggregate excess-of-loss reinsurance protection at the start of 2026 and has also renewed a hurricane season focused shared reinsurance limit arrangement to cover losses from any storms this year.
The insurer secured an upsized $125 million of aggregate catastrophe reinsurance limit from its latest catastrophe bond, the Bonanza Re Ltd. (Series 2025-1) issuance that it sponsored in December 2025.
That recently sponsored cat bond provides its $125 million of aggregate reinsurance across calendar year 2026, covering qualifying losses from named storm, earthquake (fire-following only), severe thunderstorm, winter storm and wildfire across the United States.
Progressive also renewed aggregate traditional reinsurance as well, we’ve now learned, with the company now disclosing that it has aggregate excess-of-loss reinsurance limit totalling $300 million for the current calendar year.
Progressive entered into a new aggregate reinsurance agreement at the January renewals, which it says provides it with higher coverage limits than its 2025 aggregate arrangements.
Progressive’s $300 million of aggregate reinsurance limit for 2026 has retention thresholds of $550 million and $750 million.
The recent Bonanza Re cat bond seems to make up part of that, as it has an attachment point at $550 million of qualifying losses and exhausts its reinsurance coverage at $750 million.
As that cat bond provides $125 million of limit, it seems Progressive renewed a further $175 million of aggregate reinsurance limit at the January renewals, from traditional or perhaps collateralized market sources.
In addition, Progressive has already begun making reinsurance preparations for the 2026 hurricane season, having already renewed a shared limit arrangement.
For the 2025 season, Progressive had a $175 million of shared limit coverage for named storms in its reinsurance program that ran through the hurricane season. Already the company has renewed this to run from May 31st through December 31st 2026, the insurer has disclosed.
In addition, at January 2026, Progressive added a new occurrence XOL reinsurance program covering its special lines boat product, which provides $150 million of calendar year coverage for named windstorms in excess of a $225 million per-event retention.
We had also reported last year that Progressive added a novel parametric severe convective storm aggregate reinsurance arrangement in 2025, to provide it with responsive aggregate protection for qualifying thunderstorm, hail and tornado loss events.
However, the insurer has disclosed that it has not renewed this parametric aggregate SCS coverage for 2026.
