Heritage gets “modest” reinsurance recoveries after Maui wildfire

Heritage Insurance Holdings, Inc. has reported that its per-occurrence reinsurance protection attached after the devastating wildfires in Maui, driving a “modest” recovery for the insurer during a quarter in which most of its catastrophe losses were retained.

Heritage, a super-regional property and casualty insurance holding company, said that overall it has retained $40 million of catastrophe losses during the third-quarter of 2023.

The Maui wildfires, which destroyed the historic town of Lahaina, contributed the majority of the retained catastrophe loss, Heritage explained, while the insurer also took some additional losses from hurricane Idalia.

Heritage has operated in Hawaii since 2016 when it acquired hurricane insurance specialist Zephyr Insurance Company.

The company said that its losses from the Maui wildfires resulted in “a modest amount of reinsurance recoveries from the Per Risk reinsurance program,” but that the catastrophe losses from hurricane Idalia were fully-retained by the insurer.

“Our top commitment is to our policyholders, and our thoughts go out to all affected by these major events,” Heritage CEO Ernie Garateix explained.

“We are experienced and prepared to assist our policyholders following catastrophic events and have every confidence in our ability to achieve our long-term strategic and financial goals, while ensuring our claims are handled in a fair and timely manner.”