The improved reinsurance terms should support underwriting margins and earnings stability during hurricane season. Monitor the company's net exposure to a large catastrophe event given the higher retention, but the cost reduction is a clear positive for profitability.
Price Chart
Executive Summary
ACIC renewed its core catastrophe reinsurance program for 2026/27, increasing total occurrence-based limit by 14.4% to $1.918B while reducing total provisional cost by 11.1% to $179.5M. The program includes a new multi-year quota share at 15% and $200M in catastrophe bonds. First event retention rose to $49M (15.4% of equity), partially offsetting the improved pricing and limit structure.
Key Facts
- Total occurrence-based limit increased 14.4% to $1.918B from $1.676B YoY
- Total provisional cost decreased 11.1% to $179.5M from $201.85M YoY
- Placed $200M in multi-year catastrophe bonds in two $100M tranches
- Secured a multi-year external quota share at 15% cession with A+ rated reinsurer
- First event retention increased to $49M (15.4% of equity) from $29.75M (12.6% of equity) YoY
- Maximum reinstatement premium exposure reduced 84% to $0.9M
Financial Impact
Reinsurance cost savings of approximately $22.35M (11.1% reduction) vs prior year; increased retention adds ~$19.25M to first-event exposure
Risk Factors
- Higher first-event retention increases earnings volatility in case of major hurricane
- Reinstatement premium exposure still present ($0.9M max)
- Final cost subject to adjustment based on September 2026 exposure
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001401521-26-000031 |
| Document: 0001401521-26-000031-index-headers.html | 0001401521-26-000031 |
| Document: 0001401521-26-000031-index.html | 0001401521-26-000031 |
| Document: 0001401521-26-000031.txt | 0001401521-26-000031 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 15, 2026 11d ago | Press Release | $11.10 | awaiting T+20 | — | $11.13 (+0.27%) |
Sep 25, 2026 4w ago | Insider Cluster | $9.26 | awaiting T+20 | — | $11.13 (+20.19%) |
Sep 24, 2026 4w ago | Insider Buy | $9.40 $11.08 | ▲ +17.87% | ▲ +19.35% | $11.13 (+18.40%) |
Aug 15, 2026 10w ago | Institutional Cluster | $9.45 $9.14 | ▲ +3.28% | ▲ +1.30% | $11.13 (−17.78%) |
Aug 5, 2026 11w ago | 8-K | $10.28 $9.54 | ▲ +7.20% | ▲ +7.80% | $11.13 (−8.27%) |
Jun 11, 2026 19w ago | Institutional Cluster | $10.45 $11.17 | ▲ +6.89% | ▲ +5.11% | $11.13 (+6.51%) |
May 15, 2026 23w ago | 8-K | $11.06 $10.56 | ▼ −4.52% | ▼ −6.10% | $11.13 (+0.63%) |
Apr 21, 2026 26w ago | Press Release | $11.68 $11.06 | ▼ −5.31% | ▼ −8.47% | $11.13 (−4.71%) |
Mar 17, 2026 31w ago | Press Release | $11.27 $11.80 | ▲ +4.70% | ▼ −1.34% | $11.13 (−1.24%) |
US Market Status
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