Heritage Insurance

The Tampa-based carrier said cat losses nearly tripled, while other weather losses also rose from last year.

The issuance marks the carrier’s return to the cat bond market after a five-year gap

The Floridian insurer said the write-down reflected prevailing valuation multiples.

As part of the deal, Heritage will transfer ownership of carrier Pawtucket and MGA First Access, as well as claims and underwriting data.

The financials from the listed Floridians show them plotting a path through challenges by exposure management and rate rises, but reinsurers are still picking up notable storm losses from this reinsurance-reliant group.

Storm losses were down 30% to $13mn, but the prior-year result had benefitted from a one-off gain.

Net cat losses were down, but other weather losses rose by 56% to $35.5mn.

Despite four major storms striking the US, Heritage sees Q3 cat losses decline by 35%.

Weather losses continued to take a relatively high toll amid a mixed picture for prior-year reserving levels.

The Florida insurer’s CEO said he was “cautiously optimistic” that legal reforms would benefit insurers struggling with rising loss inflation.

The Florida insurer’s combined ratio rose to an unprofitable 105.2% on higher weather losses and an increase in ceded premium.

Heritage expects to incur $24.5mn of net current accident quarter catastrophe losses and $11mn of net current accident quarter other weather losses in Q2 2021.