Heritage Insurance Holdings, Inc. has fully placed its 2026-2027 catastrophe excess-of-loss reinsurance program, the company has announced, covering three of its insurance subsidiaries at a total consolidated cost of approximately $367.5 million.
The program covers Heritage Property & Casualty Insurance Company, Narragansett Bay Insurance Company, and Zephyr Insurance Company – subsidiaries of the NYSE-listed super-regional property and casualty insurance holding company.
The total program cost represents a decrease of $63.2 million from the prior year’s renewal cost of approximately $430.7 million, according to a news release. The program includes more than $2.2 billion in coverage limits, including $712 million of multi-year protection – $550 million through fully collateralized catastrophe bonds and $162 million through the private reinsurance market.
External-party first-event reinsurance tower exhaustion points are set at approximately $1.865 billion for the Southeast, $1.245 billion for the Northeast, and $1.0 billion for Hawaii. Each tower may be supplemented with limits purchased through affiliate Osprey Re.
Loss retentions remain at approximately $50 million for the Southeast and Hawaii and $38 million for the Northeast. The company said retentions for each insurance entity are expected to be reduced by limits purchased through its affiliate captive reinsurer, Osprey Re.
The program includes participation in the Florida Hurricane Catastrophe Fund at 90.0%, consistent with the prior year, and is entirely indemnity-based, with no parametric coverage.
CEO Ernie Garateix said the placement reflects the company’s relationships with its reinsurance partners.
“I am very pleased to announce the successful completion of our 2026-2027 catastrophe excess-of-loss reinsurance program, which demonstrates the strong commitment that we have from our reinsurance partners,” Garateix said.
He added that the company secured more multi-year coverage this year alongside the cost savings.
“We placed more multi-year coverage this year and achieved substantial reinsurance cost savings while providing enhanced vertical protection for each of our insurance entities,” he said.
Garateix also acknowledged partners who supported the company through recent large-scale events.
“I would like to thank our dedicated reinsurance partners who have supported our business through multiple catastrophic events over the last several years and look forward to their continued partnership as we work to prudently grow the Company,” he said.
The reinsurance placement comes as Heritage has posted a string of improved quarterly results. In the fourth quarter of 2025, Heritage reported net income of $66.7 million, an increase of 228.5% from net income of $20.2 million in the prior year quarter, with earnings per diluted share rising to $2.15 from $0.66.
Heritage writes approximately $1.4 billion in gross personal and commercial residential premiums across the Northeast, Southeast, Hawaii, and California’s excess and surplus lines market.
