HRTG - Earnings call transcript Q4 2018 | Heritage Insurance Holdings, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Heritage Insurance Holdings Fourth Quarter 2018 Financial Results Conference Call. My name is Keith, and I will be the operator today. At this time, all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation. Please note this event is being recorded. turn at over Heritage. to Executive Arash like President Vice now the to conference Solemani, I’d Please ahead, go sir.

Arash Solemani

statements of Litigation where Good and call convenience. we Reform morning and earnings on Act available our In of to are the cause These within section for are uncertainty based you SEC statements today. call detail may We website, and current XXXX. to thanks These our meaning Private may review from that the changes for expectations. our contain visit joining and expectations filings, will Securities risks in be replay our the release forward-looking management's materials results and or earnings Today's of future release differ circumstances. the us archived. material earnings invite our our subject investors.Heritagepci.com, are press in Investors your at to

and statements to as obligation we of no statements may Our we today, are have forward-looking make. any update

on Chairman today Financial and the With Bruce Lucas, will are now For to differ our I forward-looking a earnings results forward-looking those Form Officer. in described filings. SEC our Lusk, report of other over call cause from and statements, Bruce. to us Officer; Executive Chief on Chief statements that call the could Kirk and annual description our XX-K, and refer turn materially our to risks release of please the the

Bruce Lucas

I XXXX Arash. would welcome of quarter earnings you, Thank fourth to to all you like call. our

that very-active impacts for made is the construction underwriting notably Company. and thought The Panhandle employees a in to on hurricane. all to Heritage was business, codes our very with far older decimated never has our their call, Panhandle Florida frame were homes. high stringent for dedication many communities. too like I’d Before because adequate quarter we most focused landfall criteria, to category we Hurricane Panhandle several levels, building the a not the Michael and on thank entire devastating we begin had Michael fourth of

As model. was in were we has first incurred a or is responding Michael, Alliance on superior again claims roofs loss claims Heritage that is These Michael CAN our Contractors’ $XX and losses Network the million. tarped best impacted. our at claims improved but losses loss a $XX loss to estimates our after million experience reinsurance for response mitigated landfall. our CAN our trees, underwriting result, was continued among once our activity assistance closed CAN water removed partners much and reinsurance in efforts and immediately the and and reduced Most Florida due retention and We've the booked stringent Florence CAN fourth of policyholders. only tower response. to a second minimally full much outperform related Similarly, to provided third-party our this needed Michael, quarter, are seeing to modeled time. our are not we to Hurricane event damage.

quarter, counties Michael, we quarter activity lower Virtually to the While $XX is an fourth in million reinsurance a North to and are third of retention related the third-party incremental little our underwriting. our lower tower, minimally fourth our is million prudent all of there hurricane pick in In pricing. have $X.X very Florence. loss Florence as coast, focused resulted and which reinsurance focused to volatility increase that of modest the $XX net marginally Inland quarter. on on the closed other XXXX. insurers significantly the million to we increased impacted This claims ultimate Carolina testament from Similar

our is loss of estimate. and disclosed closed approximately $XXX,XXX, Hurricane third lower than event, hurricane loss has Our Lane previously ultimate which essentially $XXX,XXX is an

virtually produced at have should was experience most Hawaii yet discipline. our testament produced underwriting loss perhaps the Lane it is impressive. a all. losses on large no our to This real portfolio Our losses,

are guidelines in public underwriting believe the we which XXXX, losses. is particularly Tri-County attritional adjusters to Florida area, represented our were we moratorium and the prone announce In model also insurer and benefiting superior fraud, claims. underwriting to claims attorney an Our first major

decision chose focus versus growth. Our on profitability top bottom we line was line contrarian, but to

We also litigated were address our to claims believe loss the the on we first impact of reserves.

a We after the thorough a mentioned reserves, context we in As of conducted led we the XXXX, litigated quarter. especially time, This we But second of since the to our second charge generate review in reserve claims. that initiatives quarter our experienced development reinsurers. underwriting reserving returns believe investors the us favorable equity have tempering both and in XXXX. while for and to quarters solid position our of fourth and third risk

basis. in Heritage among is laws top as not XXXX, not insures absolute the and highest share Tri-County, in sector third dollar largest on publicly Florida quarter our the market the insurer have of statutory of reserves the an does the certainly Although were traded our Florida’s

quarters philosophy reducing provides a stable future volatility to underwriting and platform. reserving is conservative critical in Our equity more

our line convertible quarter $XXX.X also replaced Heritage million $XXX.X to better investment million our foreseeable annually. quarter was XXXX. with We $XXX.X an held bond and million We retired for principal loan of instrumental revolving $X.X $XX convertible million $XX.X restructuring parties, from substantially of of and we we efforts. related retired our third grade and million third Currently principal. resulting on of meaningfully debt down savings restructuring million the convertible future. subsequent quarter million has benefit In of additional the our of of is new retired a in bonds. in term fourth from the only in total, $XX.X on amount an it rating $XX.X debt Furthermore, by closed credit of or fourth bonds principal shareholders over $X in will the million comprehensive principal that that million terms, of pretax to XXXX, debt Kroll of

reduce been in strongest several years. our lower has further Our position it is significantly use financial to debt. is intend leverage ratio and And outstanding capital our we earnings to year-over-year, the

retentions $XX.X related million recorded million transactions we pre-tax non-core restructuring expenses in produced $X.X quarter, the catastrophe year current and $XX.X still the to of million net XXXX’s primarily accident our debt quarter. During income in of and

For incredibly pre-tax booked X% catastrophe the pre-tax non-core and Heritage performed retaining of footprint We despite net in $XX.X income well. million million on a across our return achieved of $XX.X losses full-year, net $XX.X million equity and multi-state expenses.

negative led was is Tri-County net our top-line abusive positive with only XXXX have the in It impact ratio and Additionally, our in the exposures market Heritage for within derisking due the bottom public a on combined premiums adjusters CAN. line States, to them by strong a and secret impact on aided policies our large marginal attorneys. impressive performance an United has derisking highest no that and has These fraud by profitability. practices had XX.X%,

But, XXXX. XX% because the Total TIV year-end diversification only been the those deliver. lower our insurers. we XXXX, of We the in Tri-County. diversifying modest our in continued have the the our fourth declined premiums laser-focused years. gross Value the number enforced We Tri-County a to has of best program voluntary we pricing Florida, had or state policies we and in have believe among for believe as Florida quarter, differences, than on have and premium be X% of of year-over-year And XX% outside Florida in These despite Insured will several by only the the

Tri-County consolidated X.X% the at Our peer of with have TIV only we year-end. TIV less area means more leading lines in Florida of a stable personal volatility. is much This platform diversification

writing will in We begin and writing began expect business diversification this in Maryland later XXXX. business continue our Georgia, Alabama year. into to and and We Virginia recently

partnerships that additional Additionally, drive we are premium strategic will strong very continue our appreciative growth. of to

Our Safeco Insurance, most recent Liberty with particularly Mutual Company, partnership meaningful. a is

discounts will Our home zones. auto northeast companies to to and in coastal provide customers two combine our forces bundled

over provide very-honored now are coastal on financials. details to partner. to stature have and as select to with reputation the Heritage Safeco turn Kirk Lusk to our We will a more homeowners’ I company its call

Kirk Lusk

Thank partially negatively fourth you, the impacted loss $X Michael an which with of morning. for the The Net and Bruce. CAN profits. fourth efforts offset Hurricane our by also $X Good increase from the million. million, of cost refinancing quarter was quarter of our of by million was associated XXXX XXXX was quarter $X.X income

include income significantly by with and charge $XX.X of storm impacted $X.XX notes. a full million non-core for quarter fourth did the per associated diluted was was minimal XXXX. Net of $X.XX share the average the Although activity, convertible it non-cash quarter year XXXX for

charge compared notes associated XXXX. of For with million, for million the non-cash million. convertible full was $XX the year of $XX been XXXX, to net year income $X.X the a of net of would million full XXXX have Absent income XXXX, in the $XX.X loss in

million extent and XXXX by $XX.X from loss earned partially were of over the Net a increasing quarter of in $XX.X again adverse XX%, $X.X profits by partially XXXX retention lesser lower of ceding of did explained be of resulted northeast, profits were for gross XXXX $XX NBIC. development of during premiums storms For reductions were for the quarter XXXX, quarter of reflecting million, gross Losses fourth planned mostly million minimal but growth were million NBIC rate the favorable premiums and a loss fourth revenues, fourth by of includes $X.X which at quarter CAN. experience generated payments which up storm had the full points. quarter quarter of the ratio Heritage and the larger in the the which fourth XXXX due than variance the to by quarters to quarter due up cat of X.X net same had fourth quarter higher activity CAN percentage the can but offset in fourth the The were portfolio. earned storm offset in XXXX. quarter higher million but in the rationale the as ratio a to XX% than The the development earned

ratio impacted points to ratio In addition, ceded higher by around loss at loss net due percentage. the X the the premium overall NBIC

commissions. from XX.X% NBIC, to XXXX which administrative ceding the expenses general between the were reserve are year-end quarters of compared expense and and our low tax quarter and quarter a experienced proportion favorable ceding income of combined mostly net was permanent ratio in for XXXX. with are acquisition XX%, expenses Effective quarter of The to higher comfortable allocated of being the XXXX has to been to the position, the previously one-time very ratios and for ceding at G&A the NBIC fourth XXXX quarter are charge the the quarter XXXX. expectations. third fourth both The disclosed, pretax with line third positive combined is We $X of for by the XXXX, future allocated and gross that the we rate commissions quarter Overall, third covered to tax we XXXX, due our the net to fourth from in confirmed in due due achieved in in net development commissions favorable by with the million which expenses full reflecting which costs differences.

reduce go the with syndicate objectives several debt and that we adding the of benefit cost flexibility in banks XXXX elected financing was the and options to long-term to the while to would capital available shareholders. most of also One structure. had as provide believe flexibility We to the of existing

be Although to to in future. wanted we are currently could the arise that any focusing on pursue opportunities organic we growth, prepared

we and equity $XX.X instead of of As associated million long an shares. share, the end or from X% amortization all wanted issuance increased nearly We us by are of book to year-end an book XXXX. to at book debt that XXXX, $XXX.X commitments. to of million, end cash. with at syndicate their available the value by quarter of Book prudent flexibility, financing of per very-appreciative XXXX, of the of $XXX value $X.XX from XXXX, From to issuance an XX%. bank the using the intangible support regions of year generated share for XXXX, arise, value from reflecting banks relying with flexibility the our value and both we and book per $XX Total to per upon the by term rest in of provides the of or and for the banks increase from the $XXX.X amount those opportunities utilize of decreased of syndicate million have XXXX value increase million, $XXX.X believe XX% Tangible of a for $XX.X XX%. increase or year-end million being lead increased income per increased at the equity share the third Tangible increased share the assets million. the $X.XX $X.XX the

your share, positions overall decrease convertible Despite stock. book million $X.XX of However, the the quarter. value X% the prepurchased value and of financial price, as in take with per the well-positioned had The are insurance stock X.X the super dilution should reserves, we flexibility. impact repurchase very purchasing Overall, value lower as the shares structure also to yield larger returns book a strengthened bond the decreased products, are a The add to reduced capital year book issued formed the fourth term. available our $XX long-term that future new states, over Bruce of cost cost initial per now transaction the at we we in associated to share. notes we partnerships, Overall, the of and reduce for note a productive stock short-term amount investors as questions. to or by million price to stock at Heritage in purchase our capital the Heritage price and our launched new believe by solid and transaction the entered of deliver able we new we I current regional carrier and the benefits. revised are increases. And convertible long

Operator

you. Thank Yes.

the begin question Instructions] session. [indiscernible] And comes now from [Operator question-and-answer first KBW. with will the We

Unidentified Analyst

in gross was if losses. are litigated? claims you these you Irma seeing your update coming of provide any are of I lot an for a firstly, could wondering us and with Irma So, still and being on And Michael

Bruce Lucas

Yes.

time incurred right It's been fairly So, approximately our steady quite Irma for update loss some $XXX holding is now, million. our now.

Florida for of claims. to dropping is, at now, seeing claim month as count get further from keeps XXX The it's very new this is in this everybody open an market. claims, got a half them of in that Again, number approximately incredibly come Irma. are month X,XXX XXX We're by about We Out right attorney. claims to modest. but day, getting maybe Florida represented claims some We litigated the are point. away low we do say have our open we've every

we on that Irma, seeing of in some continued nothing we're terms development. So, are it's acceleration development that of just seeing but really gross

Unidentified Analyst

although What catastrophes more AoB great. have Irma really you currently did the quarter, do and this in attritional quite an before, to place did ability you guys but estimate And and improve development bit. issue have Okay, some you accurately? wasn't underestimate plans this adverse losses these your losses to a

Bruce Lucas

markets had came estimates Irma market $XXX developed that tripling loss and Irma that loss. landfall. disagree and of on six to we didn't Well, massively $XXX clear very very million. Right. was are million call doubling mark Once median the company our modeled on mark with Irma estimate of number and would has and early early. right dollars. on the the because the that side, it I the reserves increase book We were within actual the was million were Since we $XXX underestimated we loss our loss million. that modeled Florida We That to companies in months to incurred out time, loss it the after X between period was they losses, experience, we're seeing missed of same to in time first about kind that what $XXX

their under-reserved portfolio, terms of companies correct. them are which Tri-County for we and claims, daily Florida years simply saying too business incredibly this absolutely In been have our much risky they in have one and called We've makes volatile. that

two inventory three ago open of open lawsuits we’re has the market years more have right you our development moratorium. to first importantly, major the row and quarters positive it reserve declined that Florida see can across stats. of a led time the we in the in mean Tri-County; also the Since plummeted, seeing meaningfully, that So, I portfolio just announce pulling out carrier now, favorable in trends we're and Tri-County

Yet, other the carrier. had reserves you the as our new a look of at reduction And than in Tri-County in and a year-over-year loss Florida reduction if So, increase we to Florida of XXXX had third-quarter portfolio, claims. the loss overall any we reserves had we were more XXXX, to company in XX% XXXX, XX% first claims. we

we've proactive both think I claims. the extremely So, fronts, daily especially been on

reserve You're you've that the to recently. massive just announced our just going on say, development not see let’s portfolio seen,

Unidentified Analyst

you. risk-adjusted great. Fund you renew percentage your did what was Cat cat Florida fund. Okay, private and your pricing then, moving layer year-over-year reinsurance, Thank And Hurricane the participation to how just on at, on alongside

Bruce Lucas

still taking So, private reinsurance another we wind has up process the right the market We been are past that place and or month. still in tower. before two the now for month layers, have over we’ll

we on placed can't expenses what program. comment So, haven't private our because layer the are I

a to reinsurance to went to going of participation. we believe a to Florida of see pricing. carriers XX, the do my around the In across FHCF, due uncertainties if board you're I XX% XX minimum of the On not opinion, FHCF most move

the out everybody Florida. sucked very which So, as have be suspect that I do on will if across very, pricing be norm, will think program that's go that market impact a of positive private the capacity XX% went move when a normally would billion reinsurance as we will result participation to of market throughout we the the math here. open $X on this about that that, to XX%, We

Unidentified Analyst

Because were at XX% right? Okay. you before,

Bruce Lucas

Correct.

a should was prior the as position fund use cat that hedge. Our you

there out going higher. is at that XX rate event what pricing locking in market. the bind modest increase private we're XX% use should then to in in compared XX%, you And hardening are so, rates that layers is the to below at the low, market event in could there XX, incredibly reinsurance fund you reinsurance incredibly the if cat a and to reinsurance to rates potentially from go at and private the potentially can move By cat cost, fund or

reinsurance increases on hedge pretty So, it the serves as for a tower. price year-over-year big

Unidentified Analyst

was then, relationship, does that I you And premium wondering I you now? believe for said, the you spread also, of partnership outside generate your on coastal northeast just right And great. how -- Safeco do right now? just Okay, much expect it's

Bruce Lucas

Yes.

So, program. we just launched the

So, went coastal the northeast the develops the relationship over then, market. in time. zones how premium see there in just no program update now. the and it’s Yes, is And for we'll

Unidentified Analyst

question. And up quarter, were this and and revenues Florence Okay. Michael? since your much CAN last one has picked just How then, this

Bruce Lucas

Yes.

of CAN, just more all, out done So, their our proprietary first That's Other try network of CAN Florida revenues. group. are really us. don't at years. to welcome CAN carriers break at seven we've -- last part claims out than we hand separately look we information to that that It’s over the building

we report numbers those don't So, separately.

However, year-over-year event. you're And us. development of been seeing quickly. highly charges, reserve It's costs, benefit you reduction we is for stop can lowering we an do policyholder, and daily that we total in a water a claims, for view profit an in see claims in is money a or saves loss get absolute a it to a water as on If organization. serve CAN obviously for company losses, CAN out successful profit adjuster, differentiator the as to assignment in the public portfolio. daily as in example. across the very and favorable And reduce center loss terms events, positive really center the can a been incurred the of we've then, terms the that to of view losses these losses. And on we way the daily managing the getting catastrophe successful And that

remove tarp it if our out stopping tree, dry retention. actors out, et bad reduces entering roof, it in and a to reinsurance we're we home, house cetera, quickly, So, the the third-party can get

claims loss ultimate we lot at million million expect our saying Contractors’ a example. models for had claims Network. that So, we're are A and take hurricane closed, on of million, And we initial think was Florence right now $XX loss Florence, the Alliance stands ultimate of $XX and reason should outperformance I big last XX% month. $XX our to for the the XX response

in very terms in continuing cat years and it’s does a hedge serve So, it edge of as management. claims effective

Operator

from comes Shrimp next you. O'Neill. Thank Tom And with question [ph] the Sandler

Unidentified Analyst

report that why number has an for items, the in do with adjust do not net operating you intend income you Company question to and number, guys The for reports doesn't earnings First non-recurring to the adjusted do other accounting. future? guys

Kirk Lusk

look the income at guess, we operating an which, have statement, and interest expenses I Well, the expenses. non-operating you income you the if at can look do

you So, looking a from even it I think get can our at there. view, perspective, from gap

number to we think expect non-operating minimal. also We the of be going forward, that items relatively

going going why number there's don't is forward, we that even be though were of a there significant this have therefore, just but So, amount. at time, to we them, expect

Unidentified Analyst

wanted you XX%? still believe you call Okay, on below question ask I bit ratio. since the fair a do provided hold Does XXXX? about I another came in the a to to of just guys or revised enough. And then, a that true second guidance that expense in XX% quarter estimate it have

Kirk Lusk

you Are to gross? the referring

Unidentified Analyst

it believe ratio to net XX% expense the guidance, I was XX%.

Kirk Lusk

to Yes. that think synergies the be It's probably probably around we and some of the the integration, be I the we're would I around XX% probably right. at doing look when right right with about think going -- things the some of

Operator

from And comes Naklicki you. Citi. the next with question Thank James

James Naklicki

you. Thank My was the debt expected morning, reduction Good Yes. the future. to question in on guys.

You reduce using earnings said you'd number. that be to

what Thank of you. then, curious capital had follow-up. you a at was be the I end I XXXX? the debt would And envision to So,

Bruce Lucas

improved XXXX. we've capital XX for what the James, we a had going our to the think to massive at the haven't end position to Yes. be ratio months really debt cap of modeled shareholders. and debt ratio reduction we significantly the in cap is past Obviously, over

second, a in more I of earnings net income. we’ll Our in comment had again, along across terms volatile do consistently earnings XXXX. over the Florida, several years. we've And market pretty of expect probably come in is very strong we the Heritage expect in lines past strong from

focus potentially and debt of in uses that going share and on sources reduction, of to capital. repurchases. really we're have the And uses We it,

just returns. on for do And analyze of have a those So, decision make the and term are outstanding we're on in table. place. basis going both We authorization shareholder share the opportunities that's long the right things quarter-over-quarter an to repurchase

James Naklicki

year the what then, the cash the unrestricted for of the balance end was Company? at And

Bruce Lucas

$XXX million the was number.

James Naklicki

Is company… that at parent the

Kirk Lusk

Restricted or cash? unrestricted

James Naklicki

looking at Unrestricted. the I'm for. Yes. Cash parent,

Bruce Lucas

that the Oh, basis. a number Yes, you Yes. for James. pull consolidated out you, parent. want We’ll we on have

James Naklicki

Okay, We up That’s follow thanks. offline. fine. Yes. could

Bruce Lucas

Yes. Thank you.

Operator

Thank time, like the comments. are present as at for floor to management more I no there you. closing return questions would to And any

Bruce Lucas

you. Thank Yes.

are were touch I I in earnings upon like there would issues that not to two think my script.

is activity well Heritage. their as a of really mentioned in is, reserving bold combination been total it's three investors shares in years derisking. Tri-County position. what billion. consistently believe I our during important ranks reserves. market secret our on as marked time, we’ve our we We to predicted, conservative First to as at the loss earlier understand activities reserves been dropped Tri-County have significant I we've there. and development in these it's across forward, made same number decision move lower performance than companies companies, of future reflecting the for reserves our time And and loss lot claim that reduce as by higher no and the exposures higher seeing the terms have That a portfolios. of we've have Since value as those a period, And we come do that significantly report that adverse positioned company. that think and loss this We're out two a look one very doing have Florida why point. leading for market easily Tri-County ago we in insured took $XX

that investors we footing know believe that result, we our very do strong are loss want as we So, reserves. to on with a

three our make four our We numbers actuaries have over the numbers just or come and sure that past are in to validated and review two had reliable. independent quarters,

massive lawsuits, paid that's losses, just pretty Tri-County claims, reduction state claims. looks seeing everything in stable. Florida. far, And the not a So water Tri-County, we're that's And year-over-year across of

in think we financial selective a reserves IBNR, loss that of underwriting we how that and then translates trend our So, going positive performance have and Company. our into the terms of nice do

We current like do year. the reinsurance The touch know going what's second not really upon I this item to environment. is to would happen

the that a So, I'm to will, simply not any exist few to market. note predictions. are But unique in going give things I not that Heritage the of very do however, rest

Tri-County and Palm mentioned, caused creep related XXX% to losses has expected little as is derisk. a Dade than What Beach the well. higher and County as Broward to First, counties to Irma bit -- in

seeing abuses, adjuster did pick up So, claims out the we're fraud, large the not losses claims of related represented are attorney public to represented counties that claims. those directly and that models

As TIVs derisking. a Tri-County the result, than market values like our note to is going that have likely X.X% led end companies Heritage total of the pricing as on of than higher total more companies higher XXXX, have TIV who reinsurance concentrations mark only like are be Florida that I'd in interested reinsurance look their reinsurers to insured that of of in Tri-County as between in be will the carriers. to positively Tri-County. area Tri-County other operating I'd lower hear derisking have consolidated on and their our between results pricing to carriers what influence we XXXX plan believe the do our of our industry-leading Florida in terms Irma distinguish concentration. But,

expenses a Irma Additionally, loss to are high. related adjustment at record Hurricane

and year of now half adjustment levels remain in highest Florida have are loss a are a for changed not only expenses storm for noting the but at seen you’ve unlikely two We to that reasons. been any

First, you use Alliance rates didn't adjusters. Contractors’ resources have first they of for that we that have pay their to they just Hurricane a loss had respond to Network the didn't companies our a as exorbitant response; lot had Irma; to could

develop. the over only companies of exacerbate exposed to items adjustment as in a public Tri-County the that area, have two themselves particularly Those continues prone loss believe the I other Second, expenses which loss adjuster the to is lot will and abuses. attorney

are of our pricing. distinguish our portfolio. fronts on our deep in Florida note believe favorably taken believe our the versus look Florida industry-leading we to reinsurers reinsurance diversification efforts our of And terms will We carriers In an our of average our lowest of in LAE industry-leading XXs. the of approximately industry we have they bench, the as all at these LAE, the between that impact Florida, post reinsurance XX% do that Irma, carriers

of Florida believe most We we have diversify carrier. are the effort also a to portfolio. We taken diversified our lot

Florida, We of in TIV have XX% end of our the XXXX. as of

that treaty. in $XX do then, expecting XXXX. $X reinsurance program, additional XXXX. to XXXX we the We And the the drop are into synergies acquisition between and play expect we in to NBIC receive And of synergies million finally, and $X did synergies on approximately related of to million million number have are XX% somewhere coming we XXXX that in

although at there add up all is uncertainty FHCF really plus you when XX%, a the program. election these we reinsurance factors, for XXXX the are in massive of pricing So, increase rate market, the not some in

be Although in factors up Heritage any year-over-year exist of I'll absolute to there with that could that other that dollars are spent, anyone of at lot questions. carriers. do the mitigating that Florida positive we believe do are not With that see a terms has requeue number if

Operator

we Yes. question a Broomall and have Actually, from with Bill do Partners. Dowling

Bill Broomall

Great. Thank you.

LAE level, the LAE has of -- just up shake about industry the now? talking on mentioned, at go FHCF the that can you up LAE Just cap, obviously to X% following that the XX% you of a the XX% from we're just the high kind kind when FHCF, kind right a out FHCF, renewing about that talk such the maybe hot think of will given topic when of side how you you you

Bruce Lucas

Yes.

to XX is a normal and that we’re Florida the now a XX% it. individual been really remember Irma look XX%. to at the of day You're percent Florida everybody's right, and the LAE the interview a since has on We're most landfall. I about point and plus topic known market spoken had LAE I and carriers. basis; Irma modeled out it news where reinsurers between at predicted are performances we LAE XX% after made and I the have in mean, at going Bill. reinsurers hot the

We modeled within are the range.

So, FHCF while alongside the LAE, above yes, and on only X% does some put that covers the the FHCF. pressure layers

terms not significantly XX% in in modeled should when LAE on on to is our our that experience a LAE, loss actual based of Our opinion as LAE the ranges. terms And have higher industry's reinsurance the within the Florida market Irma total. we leaves of pay in pricing,

Bill Broomall

now that that XXXX, the up pipes into any the have in did whatnot? claims, looking you had point, small a weather of you NBIC, just And and given in -- you. Thank pick cold some up we've you northeast, perfect. seen Great,

Bruce Lucas

No.

It's actually haven't We the seen anything quarter a very quiet unusual. been northeast. really in

Bill Broomall

you great. very Thank Perfect, much.

Bruce Lucas

Bill. you, Thank

Operator

that as the question, question call that session. last was conclude And the you. Thank does and the conference

call so thank So, participation. The much for attending. your you Thank you concluded. is now for

may You your now lines. disconnect

Heritage Insurance (HRTG) 4 Mar 192018 Q4 Earnings call transcript