Heritage Insurance announces preliminary Q1 catastrophe losses of $15.4M
Heritage Insurance announced that it expects approximately $10.2M of net losses from a severe March 2019 hailstorm in Brevard County, Florida. In total, Heritage expects to incur approximately $15.4M of net catastrophe losses in the first quarter of 2019. As previously disclosed, Heritage reduced NBIC's gross quota share reinsurance coverage to 8.0% at June 1, 2018 from 18.75% previously, which management expects to further shift the seasonality of retained northeastern U.S. catastrophe losses to the first half of the year, particularly to the first quarter. In addition, the company expects to report approximately $228.6M and $109.7M of gross and net premiums earned, respectively, for the first quarter of 2019. A driver of first quarter 2019's higher ceded premium ratio, relative to the fourth quarter of 2018, is the previously disclosed increase in NBIC's net quota share reinsurance program from 49.5% to 52.0%, which was effective as of December 31, 2018, the company said.