Florida-based insurtech HCI Group has increased its reinsurance coverage across both its reinsurance towers, securing over $2.7 billion in aggregate limit at the June 1 renewal.
Similar to the previous year, HCI established two reinsurance towers for its insurance subsidiaries, Homeowners Choice and TypTap.
Reinsurance Tower 1 covers all Homeowners Choice policies issued in Florida. Reinsurance Tower 2, shared between TypTap and Homeowners Choice, covers all TypTap policies (both within and outside Florida) and Homeowners Choice policies issued outside Florida.
The reinsurance retention for Tower 1 has increased to $14 million, up from last year’s $12.5 million. For Tower 2, the reinsurance retention remains at $9 million, both applicable to the first and second events.
Ahead of the 2023 Atlantic hurricane season, HCI secured around $2.41 billion of reinsurance across its two towers at the June 2023 renewals, at a premium of $294.6 million. So, for 2024, HCI has purchased around $300 million more in reinsurance limit across the two towers, which has resulted in a higher cost with a premium of $333.6 million.
Paresh Patel, HCI’s chairman and chief executive officer, commented, “We appreciate the broad support we received from our valued reinsurance partners.”
Patel added, “HCI continues to maintain a conservative approach to its reinsurance placement. This includes securing additional limit this year to support the significant growth we have achieved over the past few months.”
