Florida-based insurtech HCI Group has detailed the 2021 reinsurance coverage that it has secured for its two insurance subsidiaries, Homeowners Choice Property & Casualty Insurance Company, Inc. (Homeowners Choice) and TypTap Insurance Company (TypTap).
The 2021-2022 Homeowners Choice Florida reinsurance program provides coverage up to $967.6 million for catastrophic losses in a single event, excluding flood losses.
The total coverage for all occurrences is $1.33 billion, and the reinsurance retention for Homeowners Choice, excluding flood coverage, is $16 million for both first and second event.
The Florida Hurricane Catastrophe Fund component of the program is estimated to cover 90% of $638.5 million in excess of $254.2 million retention at a total estimated cost of $40.9 million.
TypTap, meanwhile, has a Florida reinsurance program that provides coverage up to $452.4 million for a single event, with total coverage for all occurrences coming to $643.6 million.
Again, the Florida Hurricane Catastrophe Fund component will cover 90% of $241.2 million in excess of $96.0 million retention at a total estimated cost of $15.4 million.
For non-Florida business, the TypTap and Homeowners Choice non-Florida reinsurance program provides coverage up to $575 million for a single event, and total coverage for all occurrences of $1.14 billion. The reinsurance retention for TypTap and Homeowners Choice, excluding flood coverage, is $4 million for both first and second event.
HCI also secured a flood reinsurance program for TypTap and Homeowners Choice that provides coverage up to $60.5 million for catastrophic losses in a single event, and total coverage for all occurrences of $87.5 million.
In addition to the Florida Hurricane Catastrophe Fund, reinsurers involved in the program include Endurance Specialty Insurance Ltd., Munich Reinsurance America, Transatlantic Reinsurance Company, Swiss Reinsurance America, Arch Reinsurance Ltd., Chubb Tempest Reinsurance Ltd., various Lloyd’s syndicates, and HCI’s own Bermuda-based reinsurance subsidiary, Claddaugh Casualty Insurance Company Ltd.
The private reinsurance contracts cover, in general, hurricanes, tropical storms, tornados, floods, and other large events, while Florida Hurricane Catastrophe Fund agreement covers only storms designated as hurricanes by the National Hurricane Center.
