Greetings:
The Texas Windstorm Insurance Association Board of Directors met in Austin on May 19 for its second quarterly meeting of 2026.
2026 Hurricane Season Funding
The Board received an update on reinsurance funding for the 2026 storm season. TWIA will secure $2.2801 billion total reinsurance coverage, comprising $300 million in existing catastrophe bonds originally issued in 2025 and $1.9801 billion in new traditional reinsurance and catastrophe bonds.
The Board also voted to secure a $500 million line of credit – with an option to increase the line by an additional $200 million – to allow for an immediately available source of funds to pay claims in the event of a catastrophic storm impacting the Texas coast this year. If needed to pay claims, the line of credit would be repaid from the proceeds of state financing arrangements that are part of TWIA’s catastrophe funding structure under legislation enacted last year.
Hurricane Beryl Losses
Staff provided a briefing to the Board on recent loss developments from Hurricane Beryl, which struck the Texas coast near Matagorda in July 2024. To date, TWIA has received more than 33,000 claims from this storm and estimates total losses (including loss adjustment expenses) at $545 million.
TWIA intends to request permission from the Texas Insurance Commissioner to withdraw $3.6 million from the Catastrophe Reserve Trust Fund (CRTF), the amount that was remaining in the CRTF in TWIA’s 2024 catastrophe funding structure.
Other Actions
- The Board directed staff to issue Requests for Proposals for reinsurance broker services and catastrophe modeling services, consistent with the Association’s practice of reviewing these services about every five years.
- The Board reviewed and accepted the annual audit report and the annual investment plan for Association funds.
- The Board directed its Actuarial & Underwriting Committee to make a recommendation related to TWIA’s required annual rate filing, which the Board will consider at its August meeting.
- The Board received other routine operational updates from staff.
The meeting materials and archived recording for the Board meeting are available on our Meeting Library page.
Should you have any questions, please contact me at DDurden@twia.org or (512) 505-2255.
Sincerely,
David Durden
General Manager
Texas Windstorm Insurance Association
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