TAMPA, Fla., April 29, 2024 /PRNewswire/ — Heritage Insurance Holdings, Inc. (NYSE: HRTG) (“Heritage” or the “Company”), a super-regional property and casualty insurance coverage holding firm introduced at the moment that it absolutely placed its 2024-2025 indemnity primarily based, disaster excess-of-loss reinsurance program for its insurance coverage subsidiaries, Heritage Property Casualty Insurance Company, Narragansett Bay Insurance Company, and Zephyr Insurance Company.
“We are delighted to announce the profitable completion of our 2024-2025 disaster extra of loss reinsurance program,” acknowledged Heritage CEO Ernie Garateix. “We worth the unwavering help of our valued long-term reinsurance companions in addition to new reinsurance companions and reaffirm our dedication to offer acceptable protection for the markets we serve. I’m happy to proceed to place a portion of our program by means of capital markets utilizing disaster bonds issued by Citrus Re, which supplies multi-year reinsurance protection.”
Key factors of the 2024-2025 disaster reinsurance program embrace:
- Total consolidated cost of roughly $422.3 million.
- The prior 12 months program included over $70.0 million of restrict offered by means of the Florida Reinsurance to Assist Policyholders (“RAP”) program at no cost to the Company. The present 12 months program cost consists of alternative of that program with exterior reinsurance companions.
- External occasion first occasion reinsurance tower exhaustion factors of $1.1 billion for the Northeast, $1.3 billion within the Southeast and $750.0 million in Hawaii. Each reinsurance tower could also be supplemented with restrict bought by means of affiliate Osprey Re.
- The 2024 disaster extra of loss reinsurance program features a Southeast-only restrict of $100.0 million by means of disaster bonds issued by Citrus Re Ltd., a Bermuda-domiciled particular goal automobile. This addition enhances the present Citrus Re 2023 disaster bonds, which featured a $120.0 million Northeast solely restrict and a $115.0 million mixed Northeast/Hawaii restrict, each of which stay unused. Furthermore, the $100 million restrict of the 2022 in-force Northeast-only disaster bond additionally stays unutilized and available for the 2024 hurricane season.
- The loss retention for the Company is roughly $40.0 million for the Southeast and Hawaii, respectively, and $32 million for the Northeast. The retention for every insurance coverage firm may very well be diminished by restrict bought by means of affiliate Osprey Re.
- Florida Hurricane Catastrophe Fund participation of 90.0%, according to the prior 12 months program.
- The total program is indemnity primarily based, with no parametric covers.
About Heritage
Heritage Insurance Holdings, Inc. is a super-regional property and casualty insurance coverage holding firm. Through its insurance coverage subsidiaries and a big community of skilled brokers, the Company writes roughly $1.4 billion of gross private and industrial residential premium throughout its multi-state footprint.
Forward-Looking Statements
Statements on this press launch that aren’t historic details are forward-looking statements which might be topic to sure dangers and uncertainties that would trigger precise occasions and outcomes to vary materially from these mentioned herein. Without limiting the generality of the foregoing, phrases equivalent to “could,” “will,” “count on,” “consider,” “anticipate,” “intend,” “might,” “would,” “estimate,” “or “proceed” or the opposite adverse variations thereof or comparable terminology are meant to determine forward-looking statements. This launch consists of forward-looking statements referring to our 2024-2025 disaster reinsurance program. The dangers and uncertainties that would trigger our precise outcomes to vary from these expressed or implied herein embrace, with out limitation: the success of the Company’s underwriting and profitability initiatives; inflation and different modifications in financial situations (together with modifications in rates of interest and monetary and actual property markets), together with modifications that will influence demand for our merchandise and our operations; the influence of macroeconomic and geopolitical situations, together with the influence of provide chain constraints, inflationary pressures, labor availability and the battle between Russia and Ukraine, and within the Middle East; the influence of recent federal and state rules that have an effect on the property and casualty insurance coverage market; the cost of reinsurance, the collectability of reinsurance and our means to acquire reinsurance protection on phrases and at a cost acceptable to us; assessments charged by varied governmental businesses; pricing competitors and different initiatives by opponents; our means to acquire regulatory approval for requested charge modifications, and the timing thereof; legislative and regulatory developments; the result of litigation pending in opposition to us, together with the phrases of any settlements; dangers associated to the character of our business; dependence on funding revenue and the composition of our funding portfolio; the adequacy of our legal responsibility for losses and loss adjustment expense; our means to build and keep relationships with insurance coverage brokers; claims expertise; rankings by trade providers; disaster losses; reliance on key personnel; climate situations (together with the severity and frequency of storms, hurricanes, tornadoes and hail); modifications in loss developments; acts of battle and terrorist actions; court docket selections and developments in litigation; and different issues described sometimes by us in our filings with the Securities and Exchange Commission, together with, however not restricted to, the Company’s Annual Report on Form 10-Okay for the 12 months ended December 31, 2023 filed with the Securities and Exchange Commission on March 13, 2024, and subsequent filings. The Company undertakes no obligations to update, change or revise any forward-looking assertion, whether or not because of new data, further or subsequent developments or in any other case.
Investor Contacts:
Kirk Lusk
Chief Financial Officer
[email protected]
[email protected]
Zack Mukewa
Lambert
[email protected]
SOURCE Heritage Insurance Holdings, Inc.
