The Company has procured approximately $421 million of incremental limit to support the growth of its Earthquake franchise. Palomar's reinsurance coverage now extends to $3.92 billion for earthquake events and $135 million for continental United States hurricane events.
Palomar's per occurrence event retentions will remain at $11 million for hurricane events and $20 million for earthquake events, levels that are meaningfully within management's previously stated guideposts of less than one quarter's adjusted net income and less than 5% of stockholders' equity.
The reinsurance program continues to provide ample capacity for the Company's growth in the subject business lines as well as coverage to a level exceeding Palomar's 1:250-year peak zone Probable Maximum Loss. Of note, $360 million of the $3.92 billion earthquake limit was sourced through Palomar's seventh Torrey Pines Re catastrophe bond issuance, priced at the lower end of the indicated range.
Palomar also renewed its standalone reinsurance treaty supporting the Hawaii hurricane policies issued by Laulima Exchange. The renewed program provides Laulima with up to $865 million of per-occurrence coverage, representing a $130 million increase year-over-year, including $50 million sourced through the Torrey Pines Re platform. The placement marked the first inclusion of a standalone Hawaii Hurricane tranche within Torrey Pines Re, further diversifying Palomar's sources of reinsurance capacity. The program's per-occurrence event retention remained unchanged at $1.5 million.
"We are very pleased with the outcome of our June 1 reinsurance placement and remain grateful for the support of our broad and diversified reinsurance panel," commented Mac Armstrong, Chairman and Chief Executive ...
