Insurance holding company HCI Group, Inc. has completed its catastrophe reinsurance program for the 2026-2027 treaty year, ensuring total excess of losses (XoL) limits for the period of $4.06 billion, a 16% increase from the previous treaty year.
HCI acquired three reinsurance towers in the 2026-2027 treaty year (from June 1, 2026 to May 31, 2027), which are tailored to its individual subsidiaries and geographic footprint.
Tower 1 provides specialized coverage to Homeowners Choice Property & Casualty Insurance Company, Inc. for policies issued in the company’s principal operating locations in Florida, primarily in the central and southern regions of the state.
Reinsurance Tower 2 is shared by Homeowners Choice and TypTap Insurance Company and covers all TypTap policies nationwide and Homeowners Choice policies outside of Florida.
Tower 3 is shared by Homeowners Choice and two HCI-sponsored mutual insurance companies: Tailrow Insurance Exchange and Condo Owners Reciprocal Exchange (known as CORE).
The final tower covers Homeowner’s Choice policies issued in the remaining areas of northern Florida not included in Tower 1, as well as all Tailrow and CORE policies.
Across the three reinsurance towers, HCI received $4.06 billion in XoL limits for the 2026-2027 treaty year, a 16% increase from the previous year, which includes full reinstatement of premium protection.
HCI’s reinsurance subsidiaries, Bermuda-based Claddaugh Casualty Insurance Company Ltd. and the newly formed Cayman Islands-based Fortex Reinsurance SPC, Ltd., selectively participate in Reinsurance Towers 1 and 3.
For the three reinsurance towers, HCI expects to incur net consolidated reinsurance premiums to third parties (excluding Claddaugh and Fortex Re) of approximately $381.2 million during the period June 1, 2026, through May 31, 2027.
This represents a 10% reduction in premium costs compared to the previous 12 months. According to the announcement, these premiums are currently estimated based on risk projections and will be subject to final adjustments on September 20, 2026.
In terms of risk retention, HCI’s comprehensive first-event retention cap is set at $162.6 million, an increase of 4% from the previous year.
Meanwhile, consolidated retention below Florida’s hurricane disaster fund tier remained unchanged year over year at $155 million.
Total first-time statutory retentions totaled $22.8 million, in addition to the maximum joint retention amount related to Claddaugh and Fortex Re of $139.8 million.
If subsequent events occur, the total statutory retention amount will remain at $22.8 million and the combined maximum retention amount for Claddaugh and Fortex Re will be adjusted to $52.3 million.
