American Coastal Insurance Company
Reinsurance

How the catastrophe tower is built.

In Florida, the structure behind the policy is what pays the claim. We rebuild that tower every June 1 to exceed the Florida statutory minimum, with A− or better rated or fully collateralized reinsurers and participation. The current year’s program detail is filed with the SEC.

AmCoastal catastrophe reinsurance tower structureFour stacked zones, base to top: carrier retention held with a captive; working layers below FHCF attachment, written by catastrophe bonds and the traditional market; the FHCF layer, where the state catastrophe fund, catastrophe bonds, and the traditional market all co-participate; and upper layers above FHCF exhaustion, again written by catastrophe bonds and the traditional market. Catastrophe bonds appear as a continuous left column spanning all three reinsured zones.Upper layersA− or better rated, or fully collateralizedFHCF layerRegulated rate; admitted residential carriers onlyWorking layersPrivate market only; below FHCF attachmentCarrier retentionFirst dollars, alongside a captive insurerCatastrophe bondsTraditional marketFHCF

The shape stays the same each renewal; the limits are sized to the modeled risk of the book. Current program detail is filed with the SEC and posted at investors.amcoastal.com (opens in new tab).

The structure

Top to base, with bonds throughout.

  1. The top
    Traditional reinsurance

    A broad panel of reinsurers rated A- or better by AM Best, or fully collateralized, spreads the risk and limits concentration with any single counterparty.

  2. The middle
    FHCF participation

    The Florida Hurricane Catastrophe Fund participates in the center of the tower at a regulated, below-market rate available to admitted Florida residential carriers.

  3. The base
    Carrier retention

    We hold the first layer of every loss ourselves, alongside a captive insurer. Retaining the working layer keeps our interests aligned with the reinsurance market stacked above it.

  4. Throughout
    Catastrophe bonds

    Multi-year catastrophe bonds add capacity across the reinsured layers, not just at the top, transferring risk to the capital markets independent of the traditional reinsurance cycle.