Heritage Insurance Holdings, Inc., the nationally expansive, Florida headquartered property and casualty insurer, has now secured its targeted $200 million of reinsurance from the new catastrophe bond issuance, as the notes have now been priced at reduced levels.Heritage Insurance returned to the catastrophe bond market in February, aiming to secure $200 million or more in collateralized US named storm reinsurance from its latest Citrus Re deal.This new Citrus Re 2025-1 catastrophe bond will become the .As we then on this cat bond, we learned that the size guidance remained unchanged, but that the price guidance had fallen for both of the tranches of notes that were on offer.

Now, we can confirm that Heritage Insurance has successfully priced its latest Citrus Re 2025-1 catastrophe bond, so securing the targeted $200 million of reinsurance protection.While the pricing was finalised at the lowest-end of guidance, in the case of both of the tranches of notes, we are told.As a result, with this new Citrus Re 2025-1 catastrophe bond, Heritage has secured $200 million of capital markets backed and multi-year named storm reinsurance.

The reinsurance will cover losses in Alabama, Florida, Georgia, Mississippi, North Carolina and South Carolina for its Heritage Property & Casualty Insurance Company entity, and for its Narragansett Bay Insurance Company (NBIC) entities, plus coverage in Hawaii for its Zephyr Insurance underwriting company.Now finalised, this Citrus Re Series 2025-1 cat bond will therefore provide Heritage and its subsidiaries with a $200 million source of southeast US named storm reinsurance protection and Hawaii named storm reinsurance protection, on an indemnity trigger and per-occurrence basis, across a three-year term from June 1st 2025 to May 31st 2028.The Class A notes will cover named storm risks across the southeastern US states and remained $100 million in size, we understand.

With an initial expected loss of 1.57%, the Class A notes were first offered to investors with spread guidance in a range from 8% to 8.75%, which later fell to between 7.75% and 8%, and now have been priced at the low-end of 7.75%.The Class B tranche of notes will cover named storm risks in Hawaii only and also remained at their initial $100 million size.With an initial expected loss of 1.33%, the Class B notes were first offered to investors with spread guidance in a range from 4.5% to 5%, which was later fixed and has now been priced at the low-end of 4.5%, we are told.

Heritage has benefited from the strong price execution in the catastrophe bond market to secure a meaningful $200 million chunk of its hurricane season reinsurance needs at attractive pricing, while locking that in for a multi-year period, all thanks to the appetite of cat bond investors.You can read all about this   catastrophe bond and every other cat bond issued in our extensive Artemis Deal Directory..All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance can be accessed online.

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