HCI Group has finalized its catastrophe reinsurance programs for the 2025-2026 treaty year, covering the period from June 1, 2025, through May 31, 2026.
For the 2025-2026 treaty year, HCI established three reinsurance towers. Reinsurance Tower 1 is shared between Homeowners Choice Property & Casualty Insurance Company, a subsidiary of HCI, and Tailrow Insurance Exchange, a reciprocal insurance company sponsored by HCI. This tower covers all Homeowners Choice and Tailrow policies issued in Florida.
Reinsurance Tower 2 is shared between TypTap Insurance Company, another HCI subsidiary, and Homeowners Choice. It covers all TypTap policies, regardless of whether they are issued inside or outside Florida, and all Homeowners Choice policies issued outside of Florida.
Reinsurance Tower 3 covers all policies issued in Florida by Condo Owners Reciprocal Exchange (CORE), another HCI-sponsored reciprocal insurance company.
Paresh Patel (pictured above), chairman and chief executive officer of HCI, said the support from its global reinsurance partners highlight their confidence in HCI's underwriting practices and risk management strategies.
“We believe our reinsurance programs are prudently structured to protect the long-term financial stability of our insurance companies. With the reinsurance placement now finalized, we are well-positioned to pursue strategic initiatives aimed at delivering sustained value to our shareholders,” Patel said.
The 2025-2026 program reflects a significant expansion compared to the previous year. In the 2024-2025 treaty year, HCI secured over US$2.7 billion in aggregate limit across two reinsurance towers.
Across the three towers, HCI secured more than US$3.5 billion in excess of loss aggregate limit, with full reinstatement premium protection for the treaty year. Claddaugh Casualty Insurance Company Ltd., HCI’s Bermuda-based reinsurance subsidiary, will participate selectively across all three towers.
HCI also noted that all participating reinsurers are rated ‘A-’ (Excellent) or better by AM Best or have fully collateralized their obligations.
The statutory retentions for the first and second event are US$18 million each for Reinsurance Tower 1 and Reinsurance Tower 2. For Reinsurance Tower 3, the retention is US$3 million per event. Claddaugh’s estimated maximum retained loss is approximately US$117 million for a first event and US$35 million for a second event.
HCI reported financial growth in the first quarter of 2025, with consolidated gross premiums earned rising 17% to US$300.4 million, compared to US$256.6 million in the first quarter of 2024. The increase was driven largely by the assumption of policies from Citizens Property Insurance Corporation, supporting the company’s broader premium base ahead of the reinsurance renewals.
HCI expects to incur net consolidated reinsurance premiums ceded to third parties, excluding Claddaugh, of about US$422 million for the 2025-2026 treaty year. This figure is based on projected exposure and will be subject to adjustments as of Sept. 30, 2025.
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