HCI Group’s insurance Subsidiary, Homeowners Choice Property & Casualty Insurance Company (Homeowners Choice), has completed its reinsurance placement for the 2017-2018 year, announcing a comprehensive programme that provides cover against hurricanes and other catastrophic losses up to $968 million for a first event.
The first event element of the programme covers a probable maximum loss resulting from a 1 in 173-year storm, and the company also has in place a second and subsequent event coverage up to an $816 million loss.
Combined, that’s a total reinsurance limit for all event occurrences up to $1.784 billion.
A number of private reinsurers participated in the programme, including Endurance Specialty Insurance Ltd., MS Amlin AG, AXIS Specialty Limited, Renaissance Reinsurance Ltd., Chubb Tempest Reinsurance Ltd., Arch Reinsurance Ltd., Everest Reinsurance Company, numerous Lloyd’s of London syndicates, and also Berkshire Hathaway unit National Liability & Fire Insurance Company.
Paresh Patel, HCI’s Chief Executive Officer (CEO), said the firm’s net reinsurance costs should amount to a consolidated basis of around $113 million for the coming treaty year, a similar figure to what was paid out last year.
“While it is difficult to compare reinsurance coverages year to year, we expect our reinsurance spend to be similar to last year while securing improved coverage terms and conditions.
“In addition, we reduced our risk retained through HCI’s reinsurance subsidiary, Claddaugh Casualty Insurance Company. We believe our company and our policyholders will remain well protected in the event of a catastrophe,” said Patel.
A Form 8-K filing reveals that for its 2017-2018 programme it opted for a 45% participation rate in the Florida Hurricane Catastrophe Fund. Furthermore, the company’s retention is $16 million in a first event and $20 million in a second event, reveals the 8-K.
