Heritage Insurance Holdings, Inc., a super-regional property and casualty insurance holding company, has confirmed the completion of its 2026-2027 indemnity-based catastrophe excess loss reinsurance program for its insurance subsidiaries Heritage Property Casualty Insurance Company, Narragansett Bay Insurance Company and Zephyr Insurance Company.
The overall combined cost of the program is expected to be approximately $367.5 million, down from approximately $430.7 million recorded during the previous renewal period.
Ernie Garateix, CEO of Heritage Insurance Holdings, said: “I am pleased to announce the successful completion of our 2026-2027 catastrophe excess losses reinsurance program, which reflects the strong commitment of our reinsurance partners. At this year’s renewals, we set limits of more than $2.2 billion, including two new catastrophe bonds.
“We placed additional multi-year policies this year and achieved significant reinsurance cost savings while providing enhanced vertical protection for each of our insured entities. I would like to thank our dedicated reinsurance partners who have supported our business through multiple catastrophic events over the past several years and look forward to their continued collaboration as we strive to prudently grow the company.”
The new program includes approximately $1.865 billion in external first-event reinsurance tower depletion points in the Southeast, $1.245 billion in the Northeast and $1.0 billion in Hawaii. Heritage added that each tower may be supported by additional constraints arranged by affiliate Osprey Re.
The structure also includes $712 million in multi-year protection, of which $550 million is secured through fully collateralized catastrophe bonds and $162 million through the private reinsurance market, the company said.
Heritage confirmed that the company’s loss reserves in the Southeast and Hawaii remain about $50 million, while loss reserves in the Northeast remain about $38 million. The company added that it expects to reduce these retention levels by purchasing insurance from affiliated captive reinsurer Osprey Re.
The company also noted that participation in the Florida Hurricane Disaster Fund remained unchanged at 90.0% compared to last year’s program.
The reinsurance program is entirely indemnity-based and does not include any parametric insurance arrangements.