HERITAGE SWINGS TO LOSS ON IRMA-RELATED LOSSES

US property/casualty group Heritage Insurance Holdings swung to a third-quarter net loss of $8.7m from year-earlier income of $10.9m, largely reflecting its $20m net retention of losses from hurricane Irma. The group’s combined ratio added 16.2 points to 105.5%, as earned premiums rose 6.3% to $95.2m and claims costs climbed 18.8% to $64.0m. Results also reflected a 66% decline in realised gains to $385,000. Heritage’s rigorous reinsurance and cat bond programme reduced its net loss from Irma to the $20m retention from gross losses of $388m. Artemis.bm has reported that the gross level of losses will likely trigger two tranches of Heritage’s Citrus Re cat bonds. For the first nine months of the year, the Florida-based group’s net income fell 89% to $3.9m. The year-to-date combined ratio was 10.8 points higher at 97.8%.