Insurance holding company HCI Group, Inc. has completed its catastrophe reinsurance programs for the 2026-2027 treaty year, securing $4.06 billion in aggregate excess of loss (XoL) limit for the period, representing a 16% increase from the prior treaty year.
HCI secured three reinsurance towers for the 2026-2027 treaty year, which runs from June 1, 2026 through May 31, 2027, tailored to its various subsidiaries and geographic footprints.
Tower 1 provides dedicated coverage for Homeowners Choice Property & Casualty Insurance Company, Inc. for policies issued throughout the company’s primary Florida operating footprint, largely concentrated across the central and southern regions of the state.
Reinsurance Tower 2 is shared between Homeowners Choice and TypTap Insurance Company, and covers all TypTap policies nationwide alongside Homeowners Choice policies outside Florida.
Tower 3 is shared between Homeowners Choice and two HCI-sponsored reciprocal insurance companies: Tailrow Insurance Exchange and Condo Owners Reciprocal Exchange (known as CORE).
This last tower covers Homeowners Choice policies issued throughout the remaining northern Florida region not included within Tower 1, as well as all Tailrow and CORE policies.
Across the three reinsurance towers, HCI secured $4.06 billion in aggregate XoL limit for the 2026-2027 treaty year, a 16% increase over the previous year, including the full reinstatement premium protection.
HCI’s reinsurance subsidiaries, Claddaugh Casualty Insurance Company Ltd, based in Bermuda, and the newly formed Fortex Reinsurance SPC, Ltd., based in the Cayman Islands, selectively participate on Reinsurance Towers 1 and 3.
For the three reinsurance towers, HCI expects to incur approximately $381.2 million of net consolidated reinsurance premiums ceded to third parties, excluding Claddaugh and Fortex Re, for the period from June 1, 2026 through May 31, 2027.
This represents a 10% reduction in premium costs compared to the preceding 12-months period. According to the announcement, these premiums are currently estimates based on exposure projections and will be subject to a final true-up on September 20, 2026.
In terms of risk retention, HCI’s maximum first-event consolidated retention is set at $162.6 million, representing a 4% increase from the prior year.
Meanwhile, the consolidated retention below the Florida Hurricane Catastrophe Fund layers remains unchanged year over year at $155 million.
The combined statutory retentions for an initial occurrence total $22.8 million, supplemented by a maximum combined retention of $139.8 million linked to Claddaugh and Fortex Re.
In the case of a subsequent event, the combined statutory retentions remain at $22.8 million, with the combined maximum retention for Claddaugh and Fortex Re adjusted to $52.3 million.
