Homeowners Choice Property & Casualty Insurance Company, Inc., an HCI Group wholly owned subsidiary, has secured its 2018-2019 reinsurance renewal, which provides the firm with protection for a first event up to a loss of $888 million, excluding flood.
According to catastrophe models approved by the Florida Office of Insurance Regulation, the first event protection is sufficient to cover the firm’s probable maximum loss resulting from a 1 in 191-year storm.
The program also includes second and subsequent event coverage up to an $717 million loss, which, combined provides the company with total reinsurance limit for all event occurrences up to $1.605 billion. This is a reduction from the total reinsurance limit of $1.784 billion secured last year, while the $123 million cost of this year’s program is slightly above the $113 million spend for the 2017-2018 program.
HCI’s Chief Executive Officer (CEO), Paresh Patel, commented: “We received strong interest from our reinsurers based on our data transparency and early loss projections post Hurricane Irma.
“In addition, we eliminated for this year our risk retention within HCI’s reinsurance subsidiary, Claddaugh Casualty Insurance Company, while keeping the cost of this year’s program roughly equal to last year’s. Considering our first event retention is only $16 million, we believe our company and our policyholders will remain well protected in the event of a catastrophe.”