HCI Group
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The insurance company had set out plans last summer to expand its market share in Florida. -
The group is looking to grow in Florida and has applied for a November take-out of 75,000 policies from Florida Citizens.
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The carrier is obligated to use the RAP program and upped its ceded premiums.
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HCI is modelling a decrease in claim frequency of about 15%-20% and in litigation frequency of about 3% owing to Florida legal reforms.
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The company is confident it has sufficient additional reinsurance capacity should claims begin to develop outside of initial expectations.
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The Florida carrier suggested that Ian will not exhaust the state’s reinsurance Cat Fund.
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The company sees and opportunity to grow market share in the state.
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The ceded premium ratio declined by 2.1 points to 31%.
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The chunky deal comes as many reinsurers are heavily cutting their Florida cat books.
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The Florida carrier has yet to finalise its programs as it awaits potential reforms.
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The company’s convertible notes now have $24mn outstanding.
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The deal follows a similar transaction on northeast business in January.
