Heritage Insurance, a super-regional P&C insurance holding company, expects gross losses from Hurricane Milton to breach the third layer of its reinsurance tower.
Milton is expected to incur Heritage approximately $57 million of net current accident quarter catastrophe losses for Q4 2024.
Ernie Garateix, Heritage CEO, commented, “Overall, we are in a strong financial position and backed by a $1.30 billion reinsurance tower. We expect gross losses from Hurricane Milton to possibly reach the third layer of our reinsurance tower which starts at $450 million and goes to $914 million. We continue to maintain a robust level of reinsurance coverage through year-end 2024.
“Importantly, the strategic actions that we have taken over the last three years have helped to mitigate our losses from significant events like the three recent hurricanes. These actions which include rate adequacy, exposure management and underwriting discipline will enable Heritage to continue to support our customers as well as, we believe, further expand our business for years to come.”
Looking at Q3 2024, the firm expects to incur approximately $48 million of net current accident quarter catastrophe losses from Hurricanes Debbie and Helene.
However, despite the impact of the hurricanes, Heritage expects to deliver positive net income for Q3 2024.
Garateix concluded, “Our thoughts are with those impacted by the devastating hurricanes that have ravaged so many communities across the southeast. This has been a difficult storm season leaving millions with significant damage and loss.
“At Heritage, we are working tirelessly to support our claimants and communities to ensure they have the necessary resources to quickly rebuild. I am especially proud of our employees from across our company who have been providing a rapid response to our claimants as well as the thousands of adjustors that we have in the field who are supporting our customers daily.”
