Allstate leans on ILS unit Sanders Re for top layers of 2023 reinsurance

US insurer  Allstate has completed three of its major 2023 reinsurance renewals, increasing its spend on the programmes to $219 million from $144 million in the prior year.

In its key nationwide per occurrence cat programme, Allstate increased its limit to $6.9 billion from $6.6, but used its ILS unit Sanders Re to fill a much larger chunk of the top layers instead of traditional reinsurance.

Traditional market programmes were largely kept below the $5 billion mark, including multi-year deals offering coverage up to $4.25 billion in excess of $500 million, single year deals to the $4.75 billion mark, then smaller holes plugged with single-year and even two small eight-year deals above that point.

That's well down from prior year traditional deals covering the bulk of the road to $5.6 billion plus layers from $5.9 billion to the $6.6 billion top.

Sanders Re issuance from 2020 through early 2023 now coves the bulk of the tower above the $4.96 billion mark.

Retentions at $500 million were held flat from the prior year tower.

Allstate additionally renewed its 'National General Reciprocal Excess Catastrophe Reinsurance Contracts' for such perils as fire, allied lines, homeowners multiple peril, inland marine and automobile physical damage, in a single annual term contract running through end-June 2024. That deal takes three steps to $320 million in coverage.

Allstate has likewise renewed its 'Kentucky Earthquake Excess Catastrophe' deal providing two limits of $28 million in excess of a $2 million retention through end-May 2024.

Allstate's Florida Excess Catastrophe Program and the National General Lender Services Program will be completed in the second quarter of 2023.

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