The total coverage for all occurrences is $990.8 million, and the reinsurance retention for Tower 2 is $9.0 million for both first and second event.Īgain, the Florida Hurricane Catastrophe Fund component of the program is estimated to cover 90% of $336.1 million in excess of $156.7 million retention at a total estimated cost of $25.8 million. The reinsurance program also provides coverage up to $337 million for catastrophic losses from a single event outside of Florida, which HCI states sufficient to cover the company’s probable maximum loss resulting from a 1 in 208-year storm based on projected exposure outside of Florida at September 30, 2023. Tower 2’s 2023-2024 reinsurance program provides coverage up to $684.2 million for catastrophic losses from a single event in Florida, which is sufficient to cover the company’s probable maximum loss resulting from a 1 in 376-year storm based on projected exposure in Florida at September 30, 2023. Reinsurance Tower 2 is shared between TypTap and Homeowners Choice and covers all TypTap policies (whether issued in Florida or outside of Florida) and Homeowners Choice policies issued outside of Florida. Such adjustments to the asset, which accrue throughout the contract term, will negatively impact our operating results if a catastrophic loss event occurs.” The firm continues, “On the contrary, we will derecognise such asset in the period in which a loss experience arises. “Like last year and in accordance with generally accepted accounting principles, we will recognise an asset in the period in which the absence of loss experience obligates the reinsurer to pay cash or other consideration under the contract,” HCI explains. This reinsurance agreement remains in place for the 2023-2024 reinsurance treaty year. The RAP component of the program is estimated to cover 90% of $76.9 million in excess of $173.4 million retention with no premium paid by the company for this coverage.Įffective June 1, 2022, Homeowners Choice entered into a multi-year private reinsurance agreement which included retrospective provisions that adjust premiums in the event losses are minimal or zero. As a result, the company is obligated to utilise RAP coverage for the 2023-2024 treaty year.

The Reinsurance to Assist Policyholders program (RAP), created by the Florida Legislature, was deferred by Homeowners Choice for the 2022-2023 treaty year.

Premiums for the private reinsurance component of the program, including coverage provided by Claddaugh, are approximately $126.4 million, assuming no losses occur during the period.

Top Global Insurance & Reinsurance BrokersĪccording to HCI, the Florida Hurricane Catastrophe Fund component of the program is estimated to cover 90% of $520.6 million in excess of $242.7 million retention at a total estimated cost of $40.0 million.Reinsurance mergers & acquisitions (M&A).

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