Heritage Insurance Holdings has announced the completion of the full placement of its 2024-2025 catastrophe excess-of-loss reinsurance program for its insurance subsidiaries: Heritage Property Casualty Insurance Company, Narragansett Bay Insurance Company, and Zephyr Insurance Company.
The total cost of the program is approximately $422.3 million. Last year’s $70 million of coverage through the Florida Reinsurance to Assist Policyholders (“RAP”) program has been replaced by external reinsurance partners.
For the year ahead, Heritage has secured first-event coverage exhaustion points of $1.1 billion for the Northeast, $1.3 billion for the Southeast, and $750 million for Hawaii, with additional coverage available through affiliate Osprey Re.
This is a change from the 2023 reinsurance renewal, which provided the firm with $1.3 billion of coverage for the Northeast, $1.1 billion for the Southeast, and $870 million in Hawaii.
Moreover, a Southeast-only limit of $100 million is now accessible through the company’s Citrus Re Ltd. catastrophe bonds.
The program’s loss retention stands at approximately $40 million for the Southeast and Hawaii, and $32 million for the Northeast, with potential reductions through coverage from affiliate Osprey Re.
Participation in the Florida Hurricane Catastrophe Fund remains steady at 90%. Additionally, the entire program operates solely on an indemnity basis, without any parametric covers.
Ernie Garateix, CEO at Heritage, comments, “We are delighted to announce the successful completion of our 2024-2025 catastrophe excess of loss reinsurance program.”
“We value the unwavering support of our valued long-term reinsurance partners as well as new reinsurance partners and reaffirm our commitment to provide appropriate coverage for the markets we serve. I’m pleased to continue to place a portion of our program through capital markets using catastrophe bonds issued by Citrus Re, which provides multi-year reinsurance coverage,” Garateix concludes.
