CLEARWATER, Fla., Sept. 6, 2017 /PRNewswire/ -- Heritage
Insurance Holdings, Inc. (NYSE: HRTG) ("Heritage" or the
"Company"), a property and casualty insurance holding company,
previously announced that its insurance subsidiary, Heritage
Property & Casualty Insurance Company ("Heritage P&C") has
a catastrophe reinsurance program that provides approximately
$1.75 billion in reinsurance
protection for catastrophic losses and exceeds the requirements
established by the Company's rating agency, Demotech, Inc., the
Florida Office of Insurance Regulation. Under the reinsurance
program, Heritage has a consolidated retention of approximately
$20 million pretax before reinsurance
coverage begins.
Bruce Lucas, Chairman and CEO of
Heritage, said, "With the approach of Hurricane Irma, it's
important to remember that our current year's program reduced our
windstorm retention by half from $40
million to only $20 million
for the first catastrophic event. We have approximately
$1.75 billion of first event
reinsurance in Florida. To put this amount in perspective,
Hurricane Andrew, a powerful category 5 hurricane that struck
southeast Florida, is estimated to
produce a gross loss on our portfolio of $813.1 million. Furthermore, our
reinsurance models provide that even after enduring a Hurricane
Andrew loss, Heritage will only have exhausted approximately 30% of
its catastrophe reinsurance. Since we were not exposed to
Harvey losses in Texas or Louisiana, and we do not cover flood losses,
our Q3 results should closely approximate our prior guidance, which
would be offset by an amount up to $20
million pretax if Irma makes a Florida landfall. Heritage had
approximately $189 million of
statutory surplus as of June 30,
2017. Heritage also has over $600
million of multiyear catastrophe bonds with set
pricing. This fixed pricing provides a hedge against future
reinsurance rate increases that is unique in the Florida market."
About Heritage Insurance Holdings Inc.
Heritage Insurance Holdings, Inc. is a property and casualty
insurance holding company headquartered in Clearwater,
Florida. Its subsidiaries,
Heritage Property & Casualty Insurance Company and Zephyr
Insurance Company, write personal and commercial residential
premium through a large network of experienced agents
in Florida, Hawaii, North Carolina, South
Carolina, Georgia and Alabama. Heritage Insurance
Holdings, Inc. is led by a seasoned senior management team with an
average of 30 years of insurance industry experience.
Forward-Looking Statements:
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934, as amended. Forward-looking
statements, including, without limitation, statements about the
Company's expected use of proceeds and the proposed NBIC
Acquisition, relate to Heritage's current expectations, beliefs,
projections and similar expressions concerning matters that are not
historical facts and are not guarantees of future performance.
Forward-looking statements involve uncertainties, risks,
assumptions and contingencies, many of which are outside Heritage's
control that may cause actual results to differ materially from
those described in or implied by any forward-looking statements.
All forward-looking statements are based on currently available
information and speak only as of the date on which they are made.
Heritage assumes no obligation to update any forward-looking
statement made in this press release that becomes untrue because of
subsequent events, new information or otherwise, except to the
extent it is required to do so in connection with its ongoing
requirements under Federal securities laws. For a further
discussion of factors that could cause Heritage's future results to
differ materially from any forward-looking statements, see the
section entitled "Risk Factors" in Heritage's Annual Report on Form
10-K for the year ended December 31,
2016 and other risks described in documents filed by
Heritage from time to time with the Securities and Exchange
Commission.
Heritage Insurance Holdings Inc.
Investor Contact:
Joseph
Peiso, Investor Relations Director
727-362-7261
jpeiso@heritagepci.com
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SOURCE Heritage Insurance Holdings, Inc.