Property and casualty (P&C) insurance holding company, Heritage Insurance Holdings, Inc., has announced the placement of its 2020-2021 catastrophe reinsurance program, securing a first event reinsurance tower exhaustion point of $1.347 billion.
A first event reinsurance tower exhaustion point of $1.347 billion represents a decline of around 12% from the $1.5 billion secured last year.
Coupled with the automatic reinstatement of private market layers, a number of which are prepaid, Heritage has announced $2.382 billion of total limit in the southeast, inclusive of loss retentions and co-participations.
In line with the 2019-2020 program, Heritage’s first event loss retention in the southeast and Hawaii remains at $20 million, with additional co-participation above $945.4 million in the southeast. First event loss retention in the northeast of $13.3 million compares with $13.8 million in the prior year.
Consistent with last year, Heritage’s 2020-2021 catastrophe reinsurance program features Florida Hurricane Catastrophe Fund (FHCF) participation of 90%.
Overall, Heritage placed its catastrophe reinsurance renewal for a total cost of $272.1 million, which accounts for 28.4% of March 31, 2020 premiums-in-force, up 6% from last year.
Commenting on the firm’s renewal, Chairman and Chief Executive Officer (CEO), Bruce Lucas, said: “We were able to place our 2020-2021 catastrophe reinsurance program on reasonable terms in a challenging renewal year, which is a testament to our multi-state diversification, Florida de-risking, prudent reserving and long-standing relationships with our reinsurance partners. I would like to thank all of our reinsurance partners for their continued support.”
The 2020-2021 catastrophe reinsurance program covers Heritage’s insurance carrier subsidiaries, Heritage Property Casualty Insurance Company (HPCIC), Narragansett Bay Insurance Company (NBIC) and Zephyr Insurance Company (ZIC).