CLEARWATER, Fla., Oct. 7, 2016 /PRNewswire/ -- Heritage
Insurance Holdings, Inc. (NYSE: HRTG) ("Heritage" or the
"Company"), a property and casualty insurance holding company,
commented on its preparations for Hurricane Matthew and guarded
optimism that losses sustained based on the storm's projected path
can be absorbed by the insurance providers and the reinsurance
industry.
Bruce Lucas, Chairman and CEO of
Heritage Insurance, appeared on CNBC's October 6 Closing Bell and commented on the
current situation. "Our estimated loss scenario appears more
favorable than 24 hours ago based on Hurricane Matthew's most
recent trajectory and our latest risk modeling guidance. While only
a preliminary estimate, based on what we see now, estimated losses
could be approximately $500 million,
well within our $1.9 billion
catastrophe reinsurance coverage tower." Heritage noted upon
completion of its 2016-2017 reinsurance program the Company's
conservative approach with catastrophe reinsurance was designed to
protect both the policyholder and stockholders against the peril of
a hurricane. Lucas added, "At this time, our focus is on the people
and families being impacted by Hurricane Matthew. We stand ready to
help our policyholders in their time of need."
Lucas continued, "As of this morning, Hurricane Matthew has
remained east of the Florida
coast. As a result, projected losses could be substantially lower
than the estimated loss guidance of $500
million."
The Company previously announced its 2016-2017 reinsurance
program on June 8, 2016. The program
provides approximately $3.0 billion
in reinsurance protection from catastrophic losses for its
subsidiaries Heritage Property & Casualty Company ("Heritage
P&C") and Zephyr Insurance Company ("Zephyr") and exceeds the
requirements established by the Company's rating agency, Demotech
Inc, the Florida Office of Insurance Regulation and the Hawaii
Insurance Department.
The 2016-2017 reinsurance program provides first event coverage
up to $1.9 billion in Florida and subsequent multiple event coverage
up to $3.0 billion. Heritage P&C
has a first event primary retention of $20
million and Osprey Re, Heritage's captive reinsurance
company, has an additional $20
million first event primary retention. Heritage P&C is
well capitalized with statutory surplus of $209 million as of June
30, 2016.
About Heritage
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 approximately $600
million and $60 million,
respectively, of personal and commercial residential premium
through a large network of experienced agents. The Company is
currently writing property and casualty insurance policies in
Florida, Hawaii, North
Carolina and South
Carolina. Heritage Insurance Holdings, Inc. is led by a
seasoned senior management team with an average of 30 years of
insurance industry experience.
Heritage Insurance Holdings Inc.
Investor
Contact:
Melanie Skijus
727-362-7262
investors@heritagepci.com
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SOURCE Heritage Insurance Holdings, Inc.