Heritage Insurance Holdings, Inc., a super-regional property and casualty insurance holding company, has confirmed the completion of its 2026-2027 indemnity-based catastrophe excess-of-loss reinsurance programme for its insurance subsidiaries, Heritage Property Casualty Insurance Company, Narragansett Bay Insurance Company and Zephyr Insurance Company.
The overall consolidated cost of the programme is expected to be approximately $367.5 million, down from around $430.7 million recorded in the previous renewal period.
Ernie Garateix, Chief Executive Officer of Heritage Insurance Holdings, commented: “I am very pleased to announce the successful completion of our 2026-2027 catastrophe excess of loss reinsurance programme which demonstrates the strong commitment that we have from our reinsurance partners. In this year’s renewal, we placed over $2.2 billion of limit including two new catastrophe bonds.
“We placed more multi-year coverage this year and achieved substantial reinsurance cost savings while providing enhanced vertical protection for each of our insurance entities. I would like to thank our dedicated reinsurance partners who have supported our business through multiple catastrophic events over the last several years and look forward to their continued partnership as we work to prudently grow the Company.”
The renewed programme includes external first-event reinsurance tower exhaustion points of about $1.865 billion in the Southeast, $1.245 billion in the Northeast and $1 billion in Hawaii. Heritage added that each tower may be supported with additional limits arranged through affiliate Osprey Re.
The company said the structure also contains $712 million in multi-year protection, including $550 million secured through fully collateralised catastrophe bonds, and a further $162 million obtained through the private reinsurance market.
Heritage confirmed that the company’s loss retention remains at approximately $50 million in both the Southeast and Hawaii, while the Northeast retention remains at approximately $38 million. The company added that these retention levels are expected to be reduced through cover purchased from affiliate captive reinsurer Osprey Re.
The company also noted that participation in the Florida Hurricane Catastrophe Fund remains unchanged at 90.0% compared with the prior year’s programme.
The reinsurance programme is fully indemnity-based and does not contain any parametric cover arrangements.
