Heritage Insurance Holdings said it fully placed its 2026-2027 catastrophe excess-of-loss reinsurance program and cut its total consolidated reinsurance cost to about $367.5 million, down $63.2 million from roughly $430.7 million in the prior year’s renewal.
The company said the new program includes more than $2.2 billion of total limit, including two new catastrophe bonds. Of that, $712 million is multi-year coverage, split between $550 million in fully collateralized catastrophe bonds and $162 million in the private reinsurance market.
Heritage said the first-event reinsurance tower exhaustion points for external parties are about $1.865 billion for the Southeast, $1.245 billion for the Northeast, and $1.00 billion for Hawaii. Each tower can be supplemented with additional limit purchased through affiliate Osprey Re.
Loss retention remains at about $50 million for the Southeast and Hawaii and $38 million for the Northeast. Heritage said those retentions are expected to be reduced by additional limit from Osprey Re.
The Florida Hurricane Catastrophe Fund participation stays at 90.0%, unchanged from the prior year.
Heritage said the program is entirely indemnity based and includes no parametric covers. Today the company's shares have moved 0.25% to a price of $22.055. Check out the company's full 8-K submission here.
