By Michael Loney

June 2 - (The Insurer) - Florida carrier HCI Group has secured over $3.5 billion in excess of loss aggregate limit and full reinstatement premium protection for the 2025-2026 treaty year, with expected net premiums of $422 million.

HCI’s catastrophe reinsurance programs for the 2025-2026 treaty year run from June 1, 2025, through May 31, 2026.

The Tampa-based company secured three reinsurance towers for the 2025-2026 treaty year.

All participating reinsurers are AM Best rated A-minus or better or have fully collateralized their obligations to HCI.

In a regulatory filing, HCI stated the private reinsurance companies include Arch Re, Chubb Tempest Re, Endurance Specialty Insurance, Everest Re, Hannover Ruck, Markel Bermuda, Renaissance Re, Transatlantic Re and various Lloyd’s syndicates.

HCI’s Bermuda-based captive Claddaugh Casualty Insurance Company selectively participates across all three reinsurance towers.

The statutory retentions for the first and second event are $18 million for both the first two towers, and $3 million for the third. Claddaugh’s estimated maximum retained loss is $117 million for a first event and $35 million for a second event.

For the three reinsurance towers, HCI expects to incur net consolidated reinsurance premiums ceded to third parties, excluding Claddaugh, of approximately $422 million from June 1, 2025, through May 31, 2026.

The reinsurance premiums are an estimate based on exposure projections and subject to true up at September 30, 2025.

HCI’s chairman and CEO Paresh Patel said: “We believe our reinsurance programs are prudently structured to protect the long-term financial stability of our insurance companies.”

HCI in last year’s June renewals secured $2.7 billion of limit across its two reinsurance towers. When announcing that placement, HCI said that it expected to incur net consolidated reinsurance premiums ceded to third parties, excluding its Claddaugh vehicle, of around $333.6 million through the term of the cover.

TOWER 1

For the new 2025-2026 cover the first tower is shared between HCI subsidiary Homeowners Choice Property & Casualty Insurance Company and HCI sponsored reciprocal insurance company Tailrow Insurance Exchange, which was launched earlier this year.

The tower covers all Homeowners Choice policies issued in Florida and all Tailrow policies issued in Florida.

The tower provides coverage up to $1.28 billion for cat losses from a single event in Florida. The total coverage for all occurrences is $1.86 billion.

Coverage provided by the Florida Hurricane Catastrophe Fund component of the program is estimated to be 90% of $741 million for both Homeowners Choice and Tailrow combined. Premiums for this component of the program are $53 million for both Homeowners Choice and Tailrow combined.

Premiums for the private reinsurance component of the program, including coverage provided by Claddaugh, are $235 million.

TOWER 2

The second tower is shared between HCI subsidiary TypTap Insurance Company and Homeowners Choice and covers all TypTap policies, both inside and outside of Florida, and all Homeowners Choice policies issued outside of Florida.

The tower provides coverage up to $925 million for cat losses from a single event in Florida, and coverage up to $506 million for catastrophic losses from a single event outside of Florida.

The total coverage for all occurrences is $1.40 billion.

Coverage provided by the FHCF component of the program is estimated to be 90% of $466 million. Premiums for this component of the program are $34 million.

Premiums for the private reinsurance component of the program, including coverage provided by Claddaugh, are $169 million.

TOWER 3

The third tower covers all policies issued in Florida by Condo Owners Reciprocal Exchange, a reciprocal insurance company sponsored by HCI and launched last year.

This tower provides coverage up to $181 million for catastrophic losses from a single event in Florida, and total coverage for all occurrences of $245 million.

Coverage provided by the FHCF component of the program is estimated to be 90% of $52 million. Premiums for this component of the program are $4 million.

Premiums for the private reinsurance component of the program, including coverage provided by Claddaugh, are $22 million.