Heritage Insurance Holdings, Inc., the nationally expansive, Florida headquartered property and casualty insurer, has finalised its reinsurance renewal by securing almost $2.5 billion of limit, up 13% on the $2.194 billion renewed a year ago, while paying just $8 million more for that.As a result, Heritage’s all-important southeast US catastrophe reinsurance tower, which covers its Florida exposures, now features limit of $1.6 billion, up from .Once again, new protection from the catastrophe bond market has helped Heritage secure a larger reinsurance tower this year.Recall that Heritage sponsored the $200 million catastrophe bond in March this year, which was larger than maturing deals.

Ernie Garateix, CEO of Heritage, commented on the reinsurance renewal, “I am very pleased to announce the successful completion of our 2025-2026 catastrophe excess of loss reinsurance program which demonstrates the strong commitment that we have from our reinsurance partners.“In this year’s renewal, we increased the amount of limit that we purchased by approximately $285 million, while our overall cost increased by less than $8 million.The limit includes two new catastrophe bonds this year providing $200 million of limit.

“I would like to thank our dedicated reinsurance partners who have supported our business through multiple catastrophic events over the last several years and look forward to their continued partnership as we work to prudently grow the top line.” Despite the greatly increased limit purchased, Heritage disclosed that the 2025-2026 reinsurance renewal total cost was around $430.9 million, just a $7.8 million increase from the prior year’s renewal cost of approximately $423.1 million.After the renewal, Heritage has $1.6 billion of reinsurance for the Southeast, $1.1 billion in the Northeast and $865 million in Hawaii.For the 2025-2026 season and this year’s hurricanes, .

Across the three catastrophe bond issuances that are still in-force for 20225, this breaks out into a Southeast only limit of $200 million, a Hawaii only limit of $100 million, a Northeast only limit of $120 million and a $115 million combined Northeast/Hawaii limit.Heritage noted an increase in retention, with them being initially set at $50 million for the Southeast and Hawaii, respectively, and $39.3 million for the Northeast for 2025-2026.Last year, the company had retentions of $40 million for the southeast and Hawaii and $32 million for the northeast for 2024.

As is typical, Heritage can use its captive reinsurance vehicle Osprey Re to buy-down the retentions if it choooses and expand the program coverage as well.Heritage has again opted for a 90% Florida Hurricane Catastrophe Fund participation, which was consistent with the prior year.The insurer has again shied away from parametric protection, with all of its reinsurance indemnity based for the coming hurricane season.

CEO Garateix concluded, “This year’s placement included a higher retention which is consistent with our risk tolerance and strong financial position.” ..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.Our can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.