Heritage Insurance

First event tower for the Northeast exhausts at $1.1bn, at $1.3bn for Southeast and $750mn in Hawaii.

Pricing on the Class A notes is at the lower edge of guidance.

Pricing on the Class A notes moved toward the lower edge of guidance.

The bond will insure against named storms in eight US states.

“That’s one of the things we're monitoring ... but I think there are positive signs in the marketplace that litigation is down,” Garateix told analysts on the company’s third-quarter earnings call.

Losses from the Maui wildfire include a modest amount of reinsurance recoveries from the Per Risk reinsurance program, while losses from Hurricane Idalia were fully retained.

First event reinsurance tower exhaustion points are $1.3bn for the Northeast, $1.1bn in the Southeast and $870mn in Hawaii.

Heritage’s Q1 combined ratio fell 35 points to 94.5% from the prior-year quarter, driven primarily by lower weather losses.

The northeast deal had previously priced at the low end of the regional insurer’s targets.

The issuance is split between $100mn-$120mn of Class A notes and $115mn Class B notes.

The issuance is split between $80mn of Class A notes and $100mn Class B notes.

The insurer reported an underwriting profit for Q4.