HCI Group has finalized its catastrophe reinsurance placements for the 2026-2027 treaty year, securing broader protection, lowering overall cost and expanding the role of its captive reinsurers in a program designed to strengthen the group’s risk transfer position ahead of the new hurricane season.
The new treaty year runs from June 1, 2026 through May 31, 2027. According to the company, the reinsurance structure includes a maximum first-event consolidated retention of $162.6 million, up 4% from the previous treaty year, and a total aggregate excess of loss limit of $4.06 billion, representing a 16% increase year over year. At the same time, HCI expects its total net consolidated reinsurance premiums ceded to third parties to fall to about $381.2 million, a 10% decrease from the prior 12-month period.
Chairman and chief executive officer Paresh Patel said the latest placements delivered structural gains despite a lower overall cost. “We are delighted to have successfully completed our reinsurance programs for the 2026-2027 treaty year and appreciate the continued support from our global reinsurance partners throughout the process,” Patel said. He added that the company had achieved “meaningful structural improvements” at a materially lower cost, strengthening its broader risk transfer strategy.
HCI said the 2026-2027 program is built around three reinsurance towers. Tower 1 covers policies written by Homeowners Choice Property & Casualty Insurance Company within its main Florida footprint, concentrated largely in central and southern areas of the state. Tower 2 is shared between Homeowners Choice and TypTap Insurance Company, covering all TypTap business inside and outside Florida, as well as Homeowners Choice policies written outside Florida. Tower 3 is shared among Homeowners Choice, Tailrow Insurance Exchange and Condo Owners Reciprocal Exchange, covering the remainder of Homeowners Choice’s northern Florida business along with all Tailrow and CORE policies.
The company said its consolidated retention below the Florida Hurricane Catastrophe Fund layers remains unchanged year over year at $155 million. For a first event, combined statutory retentions total $22.8 million, with a further maximum retention of $139.8 million attributable to Claddaugh and Fortex Re. For a second event, combined statutory retentions also total $22.8 million, with a further maximum retention of $52.3 million linked to those entities.
HCI also noted that Claddaugh Casualty Insurance Company, its Bermuda-based reinsurance subsidiary, continues to participate selectively across all three towers, while Fortex Reinsurance SPC, its Cayman Islands-based reinsurer, now participates in Towers 1 and 3. Patel said that expansion marked an important step in Fortex Re’s development and something the company intends to scale over time. HCI added that all participating reinsurers are rated A- or better by AM Best or have fully collateralized their obligations.
The company said the premium figure remains an estimate based on exposure projections and will be subject to a true-up at September 30, 2026.
