Heritage Announces Full Placement of 2022-2023 CAT XOL Reinsurance Program
TAMPA, Florida., June 1, 2022 /PRNewswire/ — Heritage Insurance Holdings, Inc. (NYSE: HRTG) (“Heritage” or the “Company”), a superregional property and casualty insurance holding company, today announced that it has fully invested its 2022 catastrophe surplus -2023- claims reinsurance program for its insurance subsidiaries, Heritage Property Casualty Insurance Company, Narragansett Bay Insurance Company and Zephyr Insurance Company.
“We are pleased with the execution and terms of our comprehensive reinsurance structure, including our ability to access capital markets under our 2022-2023 program through the first Citrus Re cat bond we have issued since 2017,” said the CEO of Heritage. Ernie Garateix. “We believe the completion of the program reflects a deep understanding by our reinsurance partners of our successful diversification strategy, as well as our strong business plan, which has increased our total value insured outside. Florida at 74.0% of the VTI in the first quarter of 2022, with zero exposure to Louisiana and Texas. We appreciate our reinsurance partners’ recognition of our efforts to better diversify and underwrite our business, and we plan to continue to proactively and appropriately raise rates and take underwriting action within legal guidelines to improve our long-term profitability. »
Heritage also reported that its Catastrophe Reinsurance Program had been fully implemented without the need to take advantage of the new Reinsurance to Assist Policyholders (RAP) program which was authorized at last month’s Special Session. of the Florida legislature.
Financial information, including important announcements regarding Heritage, is regularly posted to investor.heritagepci.com.
Heritage Insurance Holdings, Inc. is a superregional property and casualty insurance holding company. Through its insurance subsidiaries and an extensive network of experienced agents, the Company underwrites approximately $1.2 billion gross personal and commercial residential premiums in its multi-state footprint.
Statements contained in this press release that are not historical facts are forward-looking statements that are subject to certain risks and uncertainties that could cause actual events and results to differ materially from those discussed herein. Without limiting the generality of the foregoing, words such as “may”, “will”, “expect”, “believe”, “anticipate”, “intend”, “could”, “would ‘, ‘estimates’, ‘or ‘continue’ or other negative variations thereof or comparable terminology are intended to identify forward-looking statements. This release includes forward-looking statements relating to our 2022-2023 catastrophe reinsurance program and strategic initiatives, including our risk diversification and selective underwriting strategies, and their impact on our future financial results and profitability. The risks and uncertainties that could cause our actual results to differ from those expressed or implied herein include, but are not limited to: the success of the Company’s underwriting and profitability initiatives; the continued and potentially prolonged impact of the COVID-19 pandemic on the economy, demand for our products and our operations; inflation and other changes in economic conditions (including changes in financial and real estate market interest rates), including as a result of the COVID-19 pandemic; the impact of macroeconomic and geopolitical conditions, including the impact of supply chain constraints, inflationary pressures, labor availability and conflict between Russia and Ukraine; the impact of new federal and state regulations affecting the property and casualty insurance market; reinsurance costs, recoverability of reinsurance and our ability to obtain reinsurance coverage on terms and at a cost acceptable to us; appraisals billed by various government agencies; price competition and other competitor initiatives; our ability to obtain regulatory approval for the requested rate changes and the timing thereof; legislative and regulatory developments; the outcome of pending litigation against us, including the terms of any settlement; risks related to the nature of our business; the dependence on investment income and the composition of our investment portfolio; the adequacy of our liability for losses and loss settlement costs; our ability to establish and maintain relationships with insurance agents; claims experience; industry service ratings; disaster losses; reliance on key personnel; weather conditions (including the severity and frequency of storms, hurricanes, tornadoes and hail); changes in claims trends; acts of war and terrorist activities; court decisions and litigation trends; and other matters that we describe from time to time in our filings with the Securities and Exchange Commission, including, but not limited to, the company’s annual report on Form 10-K for the fiscal year ended December 31, 2021 filed with the Securities and Exchange Commission on March 14, 2022 and subsequent filings. The Company undertakes no obligation to update, modify or revise any forward-looking statement, whether as a result of new information, additional or subsequent developments or otherwise.
mike houston and Jeff Schönborn
SOURCE Heritage Insurance Holdings, Inc.