HCI Group, Inc., the insurance holding company, has completed its catastrophe reinsurance programs for the 2026-2027 treaty year, securing a meaningful $4.06 billion in aggregate excess of loss (XoL) limit for the period, marking a 16% increase from the prior treaty year.
A year ago, HCI renewed its catastrophe reinsurance programs for the 2025-2026 treaty year with total aggregate limit of $3.5 billion.
Now, for the 2026-2027 treaty year running from June 1, 2026 through May 31, 2027, HCI’s catastrophe reinsurance programs now comprise total aggregate limit of more than $4.06 billion, which represents an increase of 16%.
HCI Group confirmed that three reinsurance towers have been renewed this year.
As per HCI, Tower 1 provides dedicated coverage for Homeowners Choice Property & Casualty Insurance Company, Inc. for policies issued throughout the company’s primary Florida operating footprint, largely concentrated across the central and southern regions of the state.
Reinsurance Tower 2 is shared between Homeowners Choice and TypTap Insurance Company, and covers all TypTap policies nationwide alongside Homeowners Choice policies outside Florida, HCI further explained.
And lastly, Tower 3 is shared between Homeowners Choice and two HCI-sponsored reciprocal insurance companies: Tailrow Insurance Exchange and Condo Owners Reciprocal Exchange (known as CORE). However it’s important to note that this tower covers Homeowners Choice policies issued throughout the remaining northern Florida region not included within Tower 1, as well as all Tailrow and CORE policies.
Across the three reinsurance towers, HCI confirmed that it secured $4.06 billion in aggregate XoL limit for the 2026-2027 treaty year, a 16% increase over the previous year, including the full reinstatement premium protection.
HCI’s reinsurance subsidiaries, Claddaugh Casualty Insurance Company Ltd, located in Bermuda, and the newly established Fortex Reinsurance SPC, Ltd., situated in the Cayman Islands, selectively participate in Reinsurance Towers 1 and 3.
For the three reinsurance towers, HCI anticipates incurring around $381.2 million in net consolidated reinsurance premiums ceded to third parties, excluding Claddaugh and Fortex Re, for the timeframe spanning from June 1, 2026, to May 31, 2027.
All of which represents a 10% decrease in premium expenses compared to the previous 12-month period. As stated by HCI, these premiums are currently approximations based on exposure forecasts and will undergo a final adjustment on September 20, 2026.
Regarding risk retention, HCI’s maximum first-event consolidated retention is set at $162.6 million, representing a 4% increase from the prior year. At the same time, the consolidated retention below the Florida Hurricane Catastrophe Fund layers remains unchanged year over year at $155.0 million.
HCI also confirmed that the combined statutory retentions for an initial occurrence total $22.8 million, along with a maximum combined retention of $139.8 million associated with Claddaugh and Fortex Re.
In the case of a subsequent event, the total statutory retentions continue to be $22.8 million, while the combined maximum retention for Claddaugh and Fortex Re adjusted to $52.3 million.
Paresh Patel, HCI’s Chairman and Chief Executive officer, commented: “We are delighted to have successfully completed our reinsurance programs for the 2026-2027 treaty year and appreciate the continued support from our global reinsurance partners throughout the process.
“This year’s placements include meaningful structural improvements achieved at a materially lower cost, further strengthening our overall risk transfer strategy.
“In addition, our Cayman Islands-based reinsurer, Fortex Re, is now participating across two of our three towers, marking an important step in expanding its role within our broader reinsurance strategy and an initiative we look forward to scaling further over time.”
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