Allstate seeks $200m Florida cat cover

Allstate is back in the catastrophe bond market with a target of $200 million of Florida-focused reinsurance through Sanders Re III Ltd. Series 2026-2, according to Artemis, which tracks insurance-linked securities issuance. Artemis reported on May 19 that the deal is now centered on a four-year tranche after an earlier three-year tranche was removed from the marketing. The structure would give Allstate multi-year collateralized protection against catastrophe losses tied to Florida exposure. The transaction comes as U.S. carriers continue to use catastrophe bonds alongside traditional reinsurance to manage peak-weather risk. ### Why is Allstate using a catastrophe bond here? Allstate said on April 29 that its catastrophe reinsurance program is designed to support long-term returns in its property business, reduce earnings volatility and protect customers. The company said it places coverage with both traditional reinsurers and in insurance-linked securities markets, and that it uses a multi-year approach to reduce the amount of reinsurance it needs to place in any one year. (artemis.bm) The April 29 reinsurance update also said Allstate’s modeled 1-in-100 annual aggregate probable maximum loss for hurricane, earthquake and wildfire perils was about $3.1 billion, net of reinsurance, as of Dec. 31, 2025. The company said its catastrophe program materially reduces exposure to wind, earthquake and wildfire losses. (marketscreener.com) ### What does Sanders Re III 2026-2 cover? Artemis said Sanders Re III 2026-2 is aimed at Florida catastrophe exposure and is being marketed as multi-peril protection for Allstate. The deal directory entry says the insurer returned to the market seeking $200 million or more of collateralized reinsurance focused on Florida. Artemis reported a day later that the offering had been revised to concentrate on a four-year source of protection. (marketscreener.com) Allstate has used Sanders Re vehicles before for Florida catastrophe cover. In an earlier investor memo, the company said Sanders Re 2024-2, 2023-2 and 2022-2 excess catastrophe reinsurance contracts covered qualifying losses to personal lines property in Florida from named storms, severe weather, earthquakes, fires, volcanic eruptions or meteorite impacts, as defined in the contracts. (artemis.bm) ### Why does the four-year term stand out? Artemis reported that the three-year tranche initially contemplated for Sanders Re III 2026-2 has been dropped, leaving the transaction focused on four-year protection. In catastrophe bonds, that longer tenor can matter because it locks in capacity beyond a single renewal cycle and gives the sponsor collateralized cover for multiple hurricane seasons. That reading is consistent with Allstate’s own statement that it uses a multi-year approach to placing reinsurance. (allstateinvestors.com) Florida remains one of the most closely watched catastrophe markets for U.S. property insurers because hurricane losses can drive large swings in claims costs and reinsurance demand. Allstate’s Florida program was still to be placed in the second quarter in its 2025 reinsurance update, and the company’s 2026 update again emphasized catastrophe protection as part of its risk framework. (artemis.bm) ### How does this fit into Allstate’s broader reinsurance program? Allstate said the total cost of its property catastrophe reinsurance programs, excluding reinstatement premiums, was $308 million in the first quarter of 2026, compared with $257 million in the first quarter of 2025. The company said the total cost of its catastrophe reinsurance program during 2025 was $1.23 billion. (allstateinvestors.com) The next public marker for Sanders Re III 2026-2 will be final pricing, size and issuance terms, which are typically disclosed through catastrophe bond market reporting and related deal documentation. Artemis’ deal directory continues to track the transaction as it moves through marketing. (artemis.bm) (marketscreener.com)