Heritage Insurance Reiterates Reduction in Tri-County Exposure and Catastrophe Plan

By a News Reporter-Staff News Editor at Insurance Weekly News -- Heritage Insurance Holdings, Inc. (NYSE: HRTG) ("Heritage" or the "Company"), a property and casualty insurance holding company, announced that, as previously disclosed to investors, its Florida-based insurance subsidiary, Heritage Property & Casualty Insurance Company ("Heritage P&C"), has been actively reducing its exposures in Southeast Florida. Heritage has been reducing Total Insured Values in Miami-Dade, Broward and Palm counties since the second quarter of 2016. From time period June 30, 2016 through June 30, 2017, Heritage has reduced Total Insured Values in these three counties by over $7 billion.

Bruce Lucas, Chairman and CEO of Heritage, said, "Since 2016, we have been strategically reducing exposures in Southeast Florida, which is a contrarian approach compared to many of our peer companies who have been actively writing business in Miami-Dade, Broward and Palm Beach counties. Our prudent underwriting actions have not only stabilized our attritional loss ratios, but also have resulted in a reduction of Total Insured Value in excess of $7 billion year-over-year in Southeast Florida. We believe that our reduced exposures, our decision not to write flood insurance, our conservative retention of only $20 million, and our decision to purchase multi-year catastrophe bonds as a hedge against reinsurance rate increases will yield impressive dividends for Heritage if Irma impacts Florida. Furthermore, our unique vertical claims model gives Heritage an additional resource to service claims. Heritage has a water mitigation division and a full service construction division that will allow us to service thousands of damaged homes. During Hurricane Matthew, our mitigation and repair divisions performed services for approximately 25% of our claims. We expect the opportunity will be substantial if Hurricane Irma makes landfall in Florida."

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