Heritage Insurance Holdings Finalizes 2026-2027 Reinsurance Program

Heritage Insurance Holdings, Inc., a leader in the property and casualty insurance sector, has announced the finalization of its 2026-2027 catastrophe excess-of-loss reinsurance program. This strategic initiative covers subsidiaries such as Heritage Property Casualty Insurance Company, Narragansett Bay Insurance Company, and Zephyr Insurance Company. The program's financial commitment is forecasted at approximately $367.5 million, showcasing a cost reduction from the previous $430.7 million.

Ernie Garateix, CEO of Heritage, emphasized the program's successful completion and the introduction of two new catastrophe bonds, enhancing partnerships with reinsurance entities. He highlighted the program's increased multi-year coverage, leading to significant cost savings and better protection for the company's insurers. Garateix underscored the continued support from reinsurance partners amid recent catastrophic events, expressing optimism for future collaborations.

The reinsurance framework covers several regions, offering first-event coverage of about $1.865 billion in the Southeast, $1.245 billion in the Northeast, and $1 billion in Hawaii. Additionally, Osprey Re, an affiliate, provides further support. The program features $712 million in multi-year protection through $550 million in collateralized catastrophe bonds and $162 million from the private reinsurance market. Heritage maintains loss retention at approximately $50 million for the Southeast and Hawaii, and $38 million for the Northeast, with plans to leverage Osprey Re for further mitigation. The Florida Hurricane Catastrophe Fund participation remains at a consistent 90%, and the reinsurance program is entirely indemnity-based, excluding parametric coverage options.