Heritage lowers reinsurance costs by $63 million

Heritage Insurance , a super-regional property and casualty insurance holding company, announced the full placement of its 2026-2027 catastrophe excess of loss reinsurance program for Heritage Property Casualty Insurance Company, Narragansett Bay Insurance Company, and Zephyr Insurance Company.

The program includes more than $2.2 billion of limit, including two new catastrophe bonds, and carries a total consolidated cost of approximately $367.5 million, down from approximately $430.7 million in the prior year.

According to the company, the program includes $712 million of multi year coverage, with $550 million coming from fully collateralized catastrophe bonds and $162 million from the private reinsurance market.

The external party first event reinsurance tower exhaustion points are approximately $1.865 billion for the Southeast, $1.245 billion for the Northeast, and $1 billion for Hawaii. Heritage said the program remains indemnity based with no parametric covers.

“I am very pleased to announce the successful completion of our 2026-2027 catastrophe excess of loss reinsurance program which demonstrates the strong commitment that we have from our reinsurance partners. We placed more multi-year coverage this year and achieved substantial reinsurance cost savings while providing enhanced vertical protection for each of our insurance entities.” – Ernie Garateix, CEO of Heritage.