UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 8.01 | Other Events. |
On May 18, 2023, Heritage Insurance Holdings, Inc. (the “Company”) issued a press release announcing details regarding its placement of its 2023-2024 indemnity-based, catastrophe excess-of-loss reinsurance program for its statutory insurance subsidiaries, Heritage Property Casualty Insurance Company, Narragansett Bay Insurance Company and Zephyr Insurance Company.
Key points of the 2023-2024 catastrophe reinsurance program include:
• | Total consolidated cost of approximately $420.5 million, accounting for 32% of March 31, 2023, premiums-in-force, one point higher than the prior year cost which accounted for 31% of March 31, 2022, premium-in-force. |
• | First event reinsurance tower exhaustion points of $1.3 billion for the Northeast, $1.1 billion in the Southeast and $870 million in Hawaii. |
• | The program includes $120 million Northeast only limit and $115 million of combined Northeast/Hawaii limit from the 2023 catastrophe bonds issued by a Bermuda-domiciled special purpose vehicle, Citrus Re Ltd., which provides multi-year reinsurance protection. Both bonds received authorizations above the initial targeted limits and at the lowest end of the pricing guidance. This is in addition to the $100 million limit of the 2022 in-force Northeast only catastrophe bond. |
• | The first event consolidated loss retention for the Southeast and Hawaii of approximately $40 million, and $30 million in the Northeast. Individual insurance companies will be less given the use of our captive reinsurance company, Osprey Re. |
• | Florida Hurricane Catastrophe Fund participation of 90%, consistent with the prior year program. |
• | The entire program is indemnity based, with no parametric covers. |
• | Includes the use of Reinsurance to Assist Policyholders (RAP) program created by the Florida legislature in 2022 and is expected to provide limit of approximately $71 million at no cost to the Company. The RAP program was deferred last year because our 2022-2023 placement was completed without this program. |
A copy of the press release is filed with this Current Report on Form 8-K as Exhibit 99.1 and is incorporated by reference herein.
Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits. The following exhibit is being furnished as part of this Current Report on Form 8-K.
No. |
Exhibit | |
99.1 | Press Release dated May 18, 2023. | |
104 | Cover Page Interactive Data File (the cover page tags are embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
HERITAGE INSURANCE HOLDINGS, INC. | ||||||
Date: May 18, 2023 | By: | /s/ Kirk Lusk | ||||
Kirk Lusk | ||||||
Chief Financial Officer |