Business UpdateMay 29, 2026, 06:08 AM
Heritage Insurance fully places 2026-2027 CAT XOL reinsurance program
AI Summary
Heritage Insurance Holdings, Inc. announced the successful full placement of its 2026-2027 indemnity-based catastrophe excess-of-loss reinsurance program for its insurance subsidiaries. The program achieved substantial reinsurance cost savings, totaling approximately $367.5 million, which is a $63.2 million decrease from the previous year. It provides enhanced vertical protection with over $2.2 billion of limit, including $712 million in multi-year coverage, while maintaining company loss retention at approximately $50 million for Southeast/Hawaii and $38 million for the Northeast.
Key Highlights
- Heritage Insurance fully placed its 2026-2027 indemnity-based catastrophe excess-of-loss reinsurance program.
- Total consolidated cost is approximately $367.5 million, a $63.2 million decrease from the prior year's $430.7 million.
- The program placed over $2.2 billion of limit, including two new catastrophe bonds.
- It includes $712 million of multi-year coverage ($550 million via catastrophe bonds, $162 million via private market).
- External party first event reinsurance tower exhaustion points are $1.865 billion (Southeast), $1.245 billion (Northeast), and $1.00 billion (Hawaii).
- Company loss retention remains at approximately $50 million for Southeast and Hawaii, and $38 million for the Northeast.
- Florida Hurricane Catastrophe Fund participation is 90.0%, consistent with the prior year program.
Price Impact
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