Heritage sees $40m net retained loss on Ian, inside reinsurance cover

Florida-based insurer Heritage Insurance will likely suffer $40 million in net retained losses on Hurricane Ian after some 12,000 claims arrived and worked their way into the second layer of the group's reinsurance coverage.

The $40 million loss will be inclusive of reinstatement premiums and participation by the company's captive reinsurer, Osprey Re.

Ultimate gross losses were said only to have fallen within the second tier of the group's reinsurance programme running from $140 million to $960 million.

"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," said Heritage CEO Ernie Garateix.

Separately, the midwestern-based RLI Corp. also put its pre-tax hit from Hurricane Ian in a range of $38 to $42 million net of reinsurance, the company said of preliminary estimates.

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