Heritage Insurance Holdings, Inc. expects to incur net catastrophe losses of approximately $15.4 million for the first-quarter of 2019, with more than 66% a result of a severe March 2019 hailstorm in Brevard County, Florida.
The March 2019 hailstorm is expected to result in net catastrophe losses of approximately $10.2 million for Heritage.
The Florida property and casualty insurer explains that the reduction of NBIC’s gross quota share reinsurance protection from 18.75% to 8%, effective June 1st, 2018 is expected to further “shift the seasonality of retained northeastern US catastrophe losses” in the first half of 2019, and particularly to the first-quarter.
Heritage has also announced that it expects to report gross premiums of $228.6 million and net premiums earned of $109.7 million for Q1 2019.
According to the insurer, a higher ceded premium ratio in Q1 2019 when compared with Q4 2018, is driven by the increase in NBIC’s net quota share reinsurance program to 52% from the previous 49.5%, effective December 31st, 2018.