Property and casualty (P&C) insurance holding company Heritage Insurance Holdings has announced the placement of its 2021-2022 catastrophe reinsurance program, securing a first event reinsurance tower exhaustion point of $1.4 billion, up slightly from the $1.347 billion placed last year.
Coupled with the automatic reinstatement of private market layers, a number of which are prepaid, Heritage has announced $2.5 billion of total limit in the southeast, inclusive of loss retentions and co-participations.
Total reinsurance limit secured for its southeast US exposures has now risen to $2.5 billion, inclusive of loss retentions and co-participations, which is up from $2.382 billion of total reinsurance limit in the southeast a year ago.
The Heritage reinsurance tower now includes $640 million of private market layers, which is all prepaid in the budget for this year’s reinsurance renewal.
Overall, Heritage placed its catastrophe reinsurance renewal for a total cost of $312 million, which accounts for 28.% of March 31, 2021 premiums-in-force, which is up slightly up slightly, from the $272.1 million paid for its 2020-2021 catastrophe reinsurance renewal, 28.4% of March 31st 2020 premiums-in-force.
Ernie Garateix, Heritage’s CEO, commented: “We completed our 2021-2022 catastrophe reinsurance program meaningfully earlier this year, which is a testament to our strong reinsurance partner relationships, diversified book of business and solid reserving track record.
“Compared to last year, we prepaid reinstatement premiums for all layers with a reinstatement available and substantially eliminated co-participations in the reinsurance tower above our regional retentions.
“Overall, we have a stronger program with fewer moving parts. We are grateful to our reinsurance partners for their support.”
