istock-507681856_guvendemir-3
iStock/Guvendemir
6 June 2019Insurance

HCI secures $1.5bn catastrophe reinsurance limit at renewal

HCI Group, a provider of property/casualty insurance in Florida, has completed its 2019-2020 catastrophe reinsurance programme, securing a total limit of $1.477 billion.

The programme provides coverage up to approximately $901 million for catastrophic losses in a single event, excluding flood losses.

According to catastrophe models approved by the Florida Office of Insurance Regulation, the coverage is sufficient to cover the company’s probable maximum loss resulting from a 1 in 282-year storm.

Net reinsurance premiums, excluding flood for the contract year that began June 1, 2019, are expected to be $112 million, assuming no losses occur during that period. Although, expected growth from TypTap Insurance Company, HCI’s technology driven insurance subsidiary, could increase net reinsurance premiums at the exposure true up on September 30, 2019.

Based on assumed growth and including reinsurance premiums for flood, HCI’s total ceded reinsurance premiums for the 2019-2020 contract year are estimated to be $124 million.

“We received strong support from our reinsurers based on our data transparency, insourced business model, and internally developed claims software,” said Paresh Patel, HCI’s chief executive officer. “In addition, we purchased a similar tower structure, maintained our 45% FHCF election, and reduced our absolute spend compared with last year’s program while keeping our first and second event retentions unchanged.”

Get all the latest re/insurance industry news with our daily newsletter -  sign up here.

More of today's news

Willis Towers Watson unveils new venture capital and growth initiatives

Aspen Re taps NA property catastrophe leader from Tokio Millennium Re

Nationwide reveals next CEO succeeding Rasmussen

AIG hires QBE talent to drive go-to-market strategy at Blackboard

Eurobase appoints new group insurance director from Aviva

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
10 June 2020   Additional coverage revealed in firm's mid-year renewals.
Insurance
15 January 2020   At June 30 Anchor’s in force policies represented $69 million in annualised premium.
Insurance
26 November 2019   TypTap premium growth propelled by homegrown technology.