Heritage Insurance Holdings, Inc., the Florida headquartered, nationally expansive U.S. property casualty insurer, has pre-announced $35.5 million of weather losses from the second-quarter of the year, while also saying it has had to reinstate its severe convective storm reinsurance cover.
Heritage said that the estimated net $35.5 million of weather-related losses from Q2 2021 broke down into $24.5 million of net current accident quarter catastrophe losses and $11 million of net current accident quarter other weather losses.
Heritage’s catastrophe and weather losses are always reported net, so after taking into consideration any quota share or other reinsurance arrangements.
It follows Heritage’s Q1 announcement of $31.4 million of catastrophe and weather related losses.
Heritage also appears to have revealed that it has eroded its severe convective storm reinsurance cover.
The company announced that it expects to incur $9.4 of additional ceded premium in its second quarter 2021 results.
The reason for this is a reinstatement of its severe convective storm reinsurance coverage, which we assume was eroded by losses over recent months.
Back in May, Heritage said it had completed its 2021-22 reinsurance program renewal earlier than previous years and felt it has a stronger tower in place for the coming wind season, while also having bought some more protection.