Heritage Insurance estimates $105 million in hurricane losses for 2024

Heritage Insurance estimates $105 million in hurricane losses for 2024 | Insurance Business America

Catastrophe & Flood

Heritage Insurance estimates $105 million in hurricane losses for 2024

Despite significant storm losses, the firm expects Q3 positive income

Catastrophe & Flood

By
Kenneth Araullo

Heritage Insurance Holdings announced its estimated losses from Hurricanes Debby, Helene, and Milton.

The company, a super-regional property and casualty insurance holding entity, detailed financial impacts stemming from these storms, along with its response efforts.

Ernie Garateix (pictured above), CEO of Heritage, acknowledged the significant damage caused by the hurricanes across the southeastern United States.

“This has been a difficult storm season leaving millions with significant damage and loss. At Heritage, we are working tirelessly to support our claimants and communities to ensure they have the necessary resources to quickly rebuild,” Garateix said.

He also highlighted the efforts of the company’s employees and adjusters in responding to the claims quickly.

For the third quarter of 2024, Heritage estimates approximately $48 million in net catastrophe losses from Hurricanes Debby and Helene. Despite these losses, the company expects to post positive net income for the quarter.

Looking ahead to the fourth quarter of 2024, Heritage expects to incur approximately $57 million in net catastrophe losses from Hurricane Milton. Following the storm, the company assembled claims handling resources, including over 2,000 adjusters and 200 emergency service vendors, to assist policyholders.

Almost two weeks after the storm, Heritage reported receiving 5,435 claims, with an average wait time for claimants of less than one minute. The number of claims from Hurricane Milton is nearly 50% of those reported for Hurricane Ian during the same time frame.

Garateix stated that Heritage remains in a strong financial position, supported by a $1.3 billion reinsurance tower. He noted that gross losses from Hurricane Milton may reach the third layer of the company’s reinsurance program, which spans from $450 million to $914 million. Heritage expects to maintain robust reinsurance coverage through the end of 2024.

Garateix also pointed to strategic actions the company has taken in recent years—such as rate adjustments, exposure management, and disciplined underwriting—as factors that have helped mitigate losses from major events. He added that these measures will allow Heritage to continue supporting customers and potentially expand its business in the future.

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