TAMPA,
Fla., April 29, 2024 /PRNewswire/
-- Heritage Insurance Holdings, Inc. (NYSE: HRTG) ("Heritage"
or the "Company"), a super-regional property and casualty insurance
holding company announced today that it fully placed its 2024-2025
indemnity based, catastrophe excess-of-loss reinsurance program for
its insurance subsidiaries, Heritage Property Casualty Insurance
Company, Narragansett Bay Insurance Company, and Zephyr Insurance
Company.
"We are delighted to announce the successful completion of our
2024-2025 catastrophe excess of loss reinsurance program," stated
Heritage CEO Ernie Garateix. "We
value the unwavering support of our valued long-term reinsurance
partners as well as new reinsurance partners and reaffirm our
commitment to provide appropriate coverage for the markets we
serve. I'm pleased to continue to place a portion of our program
through capital markets using catastrophe bonds issued by Citrus
Re, which provides multi-year reinsurance coverage."
Key points of the 2024-2025 catastrophe reinsurance program
include:
- Total consolidated cost of approximately $422.3
million.
- The prior year program included over $70.0 million of limit provided through the
Florida Reinsurance to Assist Policyholders ("RAP") program at no
cost to the Company. The current year program cost includes
replacement of that program with external reinsurance
partners.
- External party first event reinsurance tower exhaustion points
of $1.1 billion for the Northeast,
$1.3 billion in the Southeast and
$750.0 million in Hawaii. Each reinsurance tower may be
supplemented with limit purchased through affiliate Osprey Re.
- The 2024 catastrophe excess of loss reinsurance program
includes a Southeast-only limit of $100.0
million through catastrophe bonds issued by Citrus Re Ltd.,
a Bermuda-domiciled special
purpose vehicle. This addition complements the existing Citrus Re
2023 catastrophe bonds, which featured a $120.0 million Northeast only limit and a
$115.0 million combined
Northeast/Hawaii limit, both of
which remain unused. Furthermore, the $100
million limit of the 2022 in-force Northeast-only
catastrophe bond also remains unutilized and available for the 2024
hurricane season.
- The loss retention for the Company is approximately
$40.0 million for the Southeast and
Hawaii, respectively, and
$32 million for the Northeast. The
retention for each insurance company could be reduced by limit
purchased through affiliate Osprey Re.
- Florida Hurricane Catastrophe Fund participation of 90.0%,
consistent with the prior year program.
- The entire program is indemnity based, with no parametric
covers.
About Heritage
Heritage Insurance Holdings,
Inc. is a super-regional property and casualty insurance holding
company. Through its insurance subsidiaries and a large network of
experienced agents, the Company writes approximately $1.4 billion of gross personal and commercial
residential premium across its multi-state footprint.
Forward-Looking Statements
Statements in this
press release that are not historical facts are forward-looking
statements that are subject to certain risks and uncertainties that
could cause actual events and results to differ materially from
those discussed herein. Without limiting the generality of the
foregoing, words such as "may," "will," "expect," "believe,"
"anticipate," "intend," "could," "would," "estimate," "or
"continue" or the other negative variations thereof or comparable
terminology are intended to identify forward-looking statements.
This release includes forward-looking statements relating to our
2024-2025 catastrophe reinsurance program. The risks and
uncertainties that could cause our actual results to differ from
those expressed or implied herein include, without limitation: the
success of the Company's underwriting and profitability
initiatives; inflation and other changes in economic conditions
(including changes in interest rates and financial and real estate
markets), including changes that may impact demand for our products
and our operations; the impact of macroeconomic and geopolitical
conditions, including the impact of supply chain constraints,
inflationary pressures, labor availability and the conflict between
Russia and Ukraine, and in the Middle East; the impact of new federal and
state regulations that affect the property and casualty insurance
market; the cost of reinsurance, the collectability of reinsurance
and our ability to obtain reinsurance coverage on terms and at a
cost acceptable to us; assessments charged by various governmental
agencies; pricing competition and other initiatives by competitors;
our ability to obtain regulatory approval for requested rate
changes, and the timing thereof; legislative and regulatory
developments; the outcome of litigation pending against us,
including the terms of any settlements; risks related to the nature
of our business; dependence on investment income and the
composition of our investment portfolio; the adequacy of our
liability for losses and loss adjustment expense; our ability to
build and maintain relationships with insurance agents; claims
experience; ratings by industry services; catastrophe losses;
reliance on key personnel; weather conditions (including the
severity and frequency of storms, hurricanes, tornadoes and hail);
changes in loss trends; acts of war and terrorist activities; court
decisions and trends in litigation; and other matters described
from time to time by us in our filings with the Securities and
Exchange Commission, including, but not limited to, the Company's
Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and
Exchange Commission on March 13,
2024, and subsequent filings. The Company undertakes no
obligations to update, change or revise any forward-looking
statement, whether as a result of new information, additional or
subsequent developments or otherwise.
Investor Contacts:
Kirk
Lusk
Chief Financial Officer
klusk@heritagepci.com
investors@heritagepci.com
Zack Mukewa
Lambert
HRTG@lambert.com
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SOURCE Heritage Insurance Holdings, Inc.