17 October 2022Analysis

Heritage hit by Ian losses

Heritage Insurance Holdings, a super-regional property and casualty insurance holding company, has announced that it expects to incur $40 million of net retained losses associated with Hurricane Ian, inclusive of reinstatement premiums and participation by the company's captive reinsurer, Osprey Re.

Ultimate gross losses continue to be evaluated but are expected to fall within layer 2 of the catastrophe excess of loss program which begins at $140 million and exhausts at $960 million. To date, the company has received close to 12,000 claims associated with Hurricane Ian.

Heritage writes approximately $1.2 billion of gross personal and commercial residential premium across its multi-state footprint through its insurance subsidiaries and a large network of experienced agents.

“I recently visited southwest Florida and observed some of the wind and flood damage caused by the hurricane. Our highest priority is our policy holders and all those affected by Hurricane Ian remain in our thoughts," said Heritage chief executive Ernie Garateix. “Our ultimate gross loss is expected to be contained within the second layer of our reinsurance tower and be well within our reinsurance tower, which provides up to $1.2 billion of limit for a first event.

“Our Heritage team includes excellent claim handling resources, robust repair and mitigation capabilities, and an experienced in-house legal team, all of which are supported by technical analytical resources to assist with the claims adjusting process. Additionally, we have a highly rated syndicate of reinsurance partners on our reinsurance program.”