Heritage Announces Full Placement of 2024-2025 CAT XOL Reinsurance Program
"We are delighted to announce the successful completion of our 2024-2025 catastrophe excess of loss reinsurance program," stated Heritage CEO
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 inHawaii . 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 byCitrus Re Ltd. , aBermuda -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 andHawaii , 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
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
Investor Contacts:
Chief Financial Officer
klusk@heritagepci.com
investors@heritagepci.com
Zack Mukewa
Lambert
HRTG@lambert.com
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