March 2022 Investor Presentation
CATASTROPHE REINSURANCE PROGRAM
Heritage has a conservative 2021-2022 catastrophe reinsurance program, protecting the
Company against hurricanes and severe weather events and reducing earnings volatility.
Substantial severity and frequency protection.
First event reinsurance tower exhaustion point of $1.4 billion and total limit of $2.5 billion in the
southeast.
Reinstatement premiums for all layers with a reinstatement available have been prepaid.
Within the reinsurance tower, we have no co-participation above our regional retentions.
First event retentions in the southeast and Hawaii of $32.0 million, accounting for 9.3% of 4Q2021
GAAP equity (pre-tax). First event retention in the northeast of $20.7 million, accounting for 6.0%
of 4Q2021 GAAP equity (pre-tax).
Total cost to Heritage of $312 million, accounting for 27% of 4Q2021 premiums in-force.
Heritage's third-party reinsurers are rated "A-" or higher by A.M. Best or S&P or are fully
collateralized.
March 2022 Investor Presentation
12
HView entire presentation