Results

The carrier continued to rebalance its portfolio towards specialty at 1.1 and 1.4.

Net large losses included impacts from the New Zealand flooding, the Turkey earthquake and cyclone Gabrielle.

HCI is modelling a decrease in claim frequency of about 15%-20% and in litigation frequency of about 3% owing to Florida legal reforms.

Given better pricing following a disappointing January 1, the company increased its exposure significantly.

The company has eroded about half its international catastrophe deductible following New Zealand losses.

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

Year to date returns have reached 3.08%.

The CFO said cedants ‘recognise the new supply-demand reality’ as it benefitted from an early release of Hurricane Ian reserves.

The reinsurer lifted net reinsurance premiums by 38%, although, on a gross basis, growth was lower at 5%.

The carrier’s P&C re and CorSo units benefited from price increases at 1 April, as well as the receding impact of Ukraine.

The CEO said the reinsurer has already written some private deals ahead of the June 1 deadline and expects to continue a pivot away from E&S in favour of property cat reinsurance.

The reinsurer’s core management fee income was up by 50% year on year to $40.9mn.