Heritage Insurance Holdings, a property and casualty insurance holding company, has fully placed its 2023-2024 indemnity-based catastrophe excess-of-loss reinsurance programme.
The programme is for its statutory insurance subsidiaries, Heritage Property Casualty Insurance, Narragansett Bay Insurance and Zephyr Insurance.
This includes a US$ 120 million Northeast-only limit and a $115 million combined Northeast/Hawaii limit from the 2023 catastrophe bonds issued by Citrus Re, a Bermuda-domiciled special purpose vehicle, which provides multi-year reinsurance protection.
The total consolidated cost of the programme is approximately $ 420.5 million.
Both bonds received authorisations above the initially targeted limits and at the lowest end of the pricing guidance.
Notably, the entire programme is indemnity based, with no parametric covers.
Heritage’s programme also includes the use of Reinsurance to Assist Policyholders programme, created by the Florida legislature in 2022. It is expected to provide a limit of approximately $71 million at no cost to the company.
Heritage CEO Ernie Garateix, comments: "We are pleased to announce the completion and terms of our 2023-2024 CAT XOL reinsurance program,"
"We appreciate our reinsurance partners' continued support and their recognition of our efforts to provide the appropriate coverage for the market. We expect rates to continue to increase and will take underwriting actions within statutory guidelines to ensure long-term profitability in the markets we serve."
