Heritage Announces Full Placement Of 2024-2025 CAT XOL Reinsurance Program; Total Consolidated Cost Of ~$422.3M

Heritage Insurance Holdings, Inc. (NYSE:HRTG) ("Heritage" or the "Company"), a super-regional property and casualty insurance holding company announced today that it fully placed its 2024-2025 indemnity based, catastrophe excess-of-loss reinsurance program for its insurance subsidiaries, Heritage Property Casualty Insurance Company, Narragansett Bay Insurance Company, and Zephyr Insurance Company.

"We are delighted to announce the successful completion of our 2024-2025 catastrophe excess of loss reinsurance program," stated Heritage CEO Ernie Garateix. "We value the unwavering support of our valued long-term reinsurance partners as well as new reinsurance partners and reaffirm our commitment to provide appropriate coverage for the markets we serve. I'm pleased to continue to place a portion of our program through capital markets using catastrophe bonds issued by Citrus Re, which provides multi-year reinsurance coverage."

Key points of the 2024-2025 catastrophe reinsurance program include:

• Total consolidated cost of approximately $422.3 million.
• The prior year program included over $70.0 million of limit provided through the Florida Reinsurance to Assist Policyholders ("RAP") program at no cost to the Company. The current year program cost includes replacement of that program with external reinsurance partners.
• External party first event reinsurance tower exhaustion points of $1.1 billion for the Northeast, $1.3 billion in the Southeast and $750.0 million in Hawaii. Each reinsurance tower may be supplemented with limit purchased through affiliate Osprey Re.
• The 2024 catastrophe excess of loss reinsurance program includes a Southeast-only limit of $100.0 million through catastrophe bonds issued by Citrus Re Ltd., a Bermuda-domiciled special purpose vehicle. This addition complements the existing Citrus Re 2023 catastrophe bonds, which featured a $120.0 million Northeast only limit and a $115.0 million combined Northeast/Hawaii limit, both of which remain unused. Furthermore, the $100 million limit of the 2022 in-force Northeast-only catastrophe bond also remains unutilized and available for the 2024 hurricane season.
• The loss retention for the Company is approximately $40.0 million for the Southeast and Hawaii, respectively, and $32 million for the Northeast. The retention for each insurance company could be reduced by limit purchased through affiliate Osprey Re.
• Florida Hurricane Catastrophe Fund participation of 90.0%, consistent with the prior year program.
• The entire program is indemnity based, with no parametric covers.