HCI Group unveils $888m cat reinsurance programme
HCI Group, a provider of property/casualty insurance in Florida, has completed its catastrophic reinsurance programme for the 2018-2019 contract year, which runs from June 1, 2018 through May 31, 2019.
According to Paresh Patel, HCI’s chief executive officer, the company expects to recognise net reinsurance costs of approximately $123 million for the 2018-2019 contract year. This is some $10 million more than a year earlier, which may partly be a reflection of increased reinsurance rates.
The 2018-2019 reinsurance programme provides coverage up to $888 million for catastrophic losses in a single event, excluding flood losses, which according to catastrophe models approved by the Florida Office of Insurance Regulation is sufficient to cover the company’s probable maximum loss resulting from a 1 in 191-year storm based on projected exposure at September 30, 2018.
“We received strong interest from our reinsurers based on our data transparency and early loss projections post Hurricane Irma,” said Patel. “In addition, we eliminated for this year our risk retention within HCI’s reinsurance subsidiary, Claddaugh Casualty Insurance Company, while keeping the cost of this year’s programme roughly equal to last year’s.
"Considering our first event retention is only $16 million, we believe our company and our policyholders will remain well protected in the event of a catastrophe.”
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