HCI Group grows cat reinsurance by almost a third
Catastrophe reinsurance cover at US-based P&C insurer HCI Group, had increased by almost a third (31 percent) according to its mid-year 2020 renewals figures.
The insurer now has a limit of $1.9 billion on a first and second event basis.
The group’s insurance subsidiaries, Homeowners Choice Property & Casualty Insurance Company and TypTap Insurance Company, offer reinsurance for hurricanes, floods, and other cat events. Its 2020-2021 reinsurance programme offers cat coverage of up to $1.4 billion for a single event, although this excludes flood . The Florida Office of Insurance Regulations has said this amount would be enough to cover the probable maximum loss from a 1 in 320-year storm.
HCI said the retention for its two insurance subsidiaries, excluding flood coverage, is around $16 million in the first event and $16 million in the second event.
The expanded programme does not offer catastrophic flood protection as it is available under a separate contract, the group said.
An agreement between HCI and the Florida Hurricane Catastrophe Fund (FHCF) confirmed the group will only cover storms designated as hurricanes by the National Hurricane Centre. Estimates show that FHCF is expected to cover 90 percent of $890.6 million of first event loss in excess of $349.4 million this year.
