HCI Group Inc. has renewed its reinsurance for its principal P&C insurance coverage underwriting subsidiary Householders Alternative Property & Casualty Insurance coverage Firm, Inc. subsidiary and for its digital insurtech firm TypTap.
The reinsurance tower is comparatively just like final yr for Householders Alternative, however in an indication of the growth of the insurtech technique at TypTap, HCI has prolonged the highest of its reinsurance tower significantly, which we assume is to cowl the insurtech’s progress.
For 2022 into 2023, HCI mentioned its principal reinsurane counterparties have been Nationwide Legal responsibility & Hearth Insurance coverage Firm, Endurance Specialty Insurance coverage Ltd., Munich Reinsurance America, Transatlantic Reinsurance Firm, Swiss Reinsurance America, Arch Reinsurance Ltd., Chubb Tempest Reinsurance Ltd., Renaissance Reinsurance Ltd. and its associates, plenty of Lloyd’s syndicates, and its personal Bermuda-based reinsurance subsidiary, Claddaugh Casualty Insurance coverage Firm Ltd.
All the non-public reinsurers HCI has transacted with are both AM Finest rated ‘A-’ (Wonderful) or higher the corporate mentioned, whereas others have have absolutely collateralized their obligations to the insurer, implying some ILS fund capital could have participated on a collateralized foundation.
Like final yr, HCI Group has renewed 4 separate reinsurance towers, one every for its Householders Alternative and TypTap subsidiaries in Florida, a tower growth states (so progress areas outdoors of Florida), and one for an all states flood reinsurance program.
For Householders Alternative, the reinsurance tower offers $935.7 million of single occasion in Florida protection, excluding flood. Whereas whole reinsurance protection for all occurrences is $1.33 billion (flat with the prior yr) and the retention is $14 million for each first and second occasion.
The Florida Hurricane Disaster Fund makes up 90% of $573 million in extra of a $246.7 million retention, at a complete estimated value of $41.5 million.
The non-public reinsurance part of this system (excluding flood protection) value premiums of roughly $72.6 million, assuming no losses happen in the course of the interval.
Householders Alternative additionally secured a multi-year non-public reinsurance settlement, with retrospective provisions that modify premiums within the occasion losses are minimal or zero.
The TypTap reinsurance program offers as much as $637.3 million of single occasion catastrophic loss protection in Florida, excluding flood. Whereas whole reinsurance protection for all occurrences is $902.3 million, up significantly on the earlier years $643.6 million. That is all after a $10 million retention for each first and second occasion.
The Florida Hurricane Disaster Fund part of the TypTap program is estimated to cowl 90% of $360.8 million in extra of $155.4 million retention, all at a complete estimated value of $26.1 million.
Non-public reinsurance premiums paid for the TypTap tower are estimated at $60 million, assuming no losses happen in the course of the interval.
TypTap has secured a single-year reinsurance settlement that features retrospective provisions that modify premiums within the occasion losses are minimal or zero, as properly.
For the so-called growth states reinsurance program, that covers each Householders Alternative and TypTap outdoors Florida, $525 million of single occasion reinsurance protection has been secured. Whereas whole protection for all occurrences is $1.03 billion, down barely on the prior yr. The growth states retention is $10 million for each first and second occasion.
Premiums prices are $54.2 million, assuming no losses happen in the course of the interval for the growth states tower and each TypTap and Householders Alternative profit from a single-year reinsurance settlement that features retrospective provisions that modify premiums within the occasion losses are minimal or zero.
The flood reinsurance tower, which is all states, offers offers protection as much as $60.5 million for catastrophic losses in a single occasion ensuing from a flood, whereas whole protection for all occurrences is $87.5 million. and retention is $3 million for each first and second occasion.
Throughout the total yr, HCI Group expects to incur web reinsurance premiums ceded of roughly $247.3 million, assuming no losses to the towers.