TWIA Board Sets $4.3B as 1-in-50 Probable Maximum Loss for 2026 Storm Season

The Texas Windstorm Insurance Association’s board voted to finalize $4.3 billion as the association’s 1-in-50 probable maximum loss for the 2026 storm season.

The 1:50 PML, the level of losses that would be expected to be exceeded on an annual basis 2% or less of the time, is a benchmark that establishes the minimum amount of reinsurance needed to meet TWIA’s statutory funding obligation for the upcoming storm season.

The board took the vote on Tuesday. Changes enacted by the Texas Legislature last year reduced TWIA’s minimum required catastrophe funding level. Previously, it was required to obtain catastrophe funding based on a 1-in-100 probable maximum loss, or the level of losses that would be expected to be exceeded on an annual basis 1% or less of the time.

The TWIA Actuarial & Underwriting Committee in 2025 developed a recommendation to the board on a method to determine the association’s 1-in-50 probable maximum loss for the 2026 storm season.

TWIA says it will pursue $2.28 billion in reinsurance for the 2026 hurricane season, which includes new coverage and existing multi-year catastrophe bonds, on the most favorable terms that can be achieved. This reinsurance funding is in addition to $2 billion in statutory funding sources.

The TWIA board on Nov. 4 voted on the association’s 2026 operating budget. Net operating expenses are budgeted to increase from 5.2% of earned premium in 2025 to 5.5% in 2026.