Heritage’s Q3 catastrophe & weather losses reach $51.4m

Heritage Insurance Holdings, Inc., the Florida headquartered, nationally expansive U.S. property casualty insurer, has reported a preliminary estimate of third-quarter 2021 catastrophe and weather losses, saying the total is expected to be $51.4 million net.

Interestingly, because Heritage does not sell homeowners insurance in Louisiana the company appears to have avoided a particularly significant impact from the largest catastrophe event of the year, hurricane Ida.

In fact, Heritage reported today that its catastrophe losses for Q3 are estimated as just $16 million net , even though that includes impacts from hurricanes Elsa, Fred, Henri and Ida.

On top of this Heritage has reported an estimated $35.5 million of net current accident quarter other weather losses for Q3.

Which gives the total catastrophe and weather losses from the current accident quarter of $51.4 million.

It suggests that Heritage will not have made particularly significant reinsurance recoveries for the quarter, as it seems unlikely any of the single catastrophe losses will have breached the attachment of its excess of loss reinsurance tower.

Some quota share coverage will likely have been available to the company, helping to moderate its exposure to catastrophes and weather events through the third-quarter of the year.

Previously, Heritage announced  $31.4 million of catastrophe and weather related losses and $35.5 million of weather-related losses from Q2 2021.

Back in May this year, 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.

While Q3 has been a more costly quarter, it seems that with no major storm events striking Florida this year Heritage has suffered fewer catastrophe impacts, which should position the insurer well for next year and for its next rounds of reinsurance renewal negotiations.