Cincinnati lifts property catastrophe reinsurance tower to $1.8bn at July renewal

Cincinnati Financial Corporation purchased an additional layer on its property catastrophe reinsurance treaty with a limit of $300 million at its July 1, 2025 renewal, increasing the total limit on its reinsurance tower from $1.5 billion to $1.8 billion.

In its latest quarterly report, Cincinnati confirmed that it retains 57.2% of losses between the $1.5 billion and new top of its reinsurance tower at $1.8 billion.

The provisions of this additional layer are similar to those of the existing layers, with the annual ceded premiums for the new coverage estimated to be less than $5 million.

Moreover, Cincinnati also renewed its retrocession for its Cincinnati Re vehicle at June 1, 2025.

The completed placement includes property catastrophe excess of loss (XoL) coverage for losses in excess of $90 million per occurrence, with a total available limit of $73 million per occurrence.

Ceded premiums for this one-year retro renewal for Cincinnati Re are estimated at approximately $16 million.

Furthermore, Cincinnati has also reported that there were no material changes during Q2 2025 to the estimated $38 million recovery, as of March 31, 2025, related to the California wildfires under the Cincinnati Re only program, effective June 1, 2024, which expired during Q2’25.

Cincinnati Re said: “Other written premiums include premiums ceded to reinsurers as part of our reinsurance ceded program. A decrease in ceded premiums increased net written premiums by $4 million for the second quarter and an increase in ceded premiums decreased net written premiums by $76 million for the first six months of 2025, compared with the same periods of 2024.”

As well as this, Cincinnati’s other written premiums for the first six months of 2025 included a net unfavorable amount of $52 million for reinsurance treaty reinstatement premiums related to the California wildfires, which includes a favourable $12 million for Cincinnati Re and an unfavourable $64 million for the company’s personal lines insurance segment.

However, the company also confirmed that under its main property catastrophe reinsurance treaty, the estimated recovery for the California wildfires remained at the March 31st level of $429 million.

Read all of our reinsurance renewal news coverage.