Bermuda beware: Florida attracting reinsurers

Posted by on Nov 9, 2010 in Local News & Alerts | 0 comments

THREE more Bermuda insurers have been cleared to write business in the U.S. State of Florida without having to post large collateral.

ACE, Tempest Re, Hiscox and Partner Re are affected.

As of last year all three had more than the $100 million surplus required by

Florida law. Ace and Tempest Re had $5.1 billion, Hiscox $808 million and Partner Re had $3.4 billion.

Under the old State requirment, foreign companies wishing to operate there had to post 100 percent collateral.

That has been reduced to just 20 percent.

Florida Insurance commissioner Kevin McCarthy says the State has played a key role in modernizing the U.S. reinsurance market.

And these collateral agreements are intended to encourage additional investment in Florida’s property insurance marketplace.

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