Validus Reinsurance Ltd. has become the latest reinsurer licensed to do business in Florida under the state’s reduced capital law.
Under a 2009 law that was designed to attract more private capital to the state, off-shore reinsurers can reduce their capital requirements from 100 percent to 20 percent if they meet certain financial standards. Specifically, the reinsurers must have at least $100 million in capital and surplus and scored a top rating by at least two nationally recognized rating agency.
The law also made Florida the first state in the nation to allow ceding insurers to receive full credit on their financial statements for reinsurance purchased by eligible non-U.S.-based reinsurers.
The Bermuda-based Validus reported having more than $3.3 billion in capital and surplus as of December 31, 2011. The reinsurer also had the required ratings.
Bermuda reinsurers now provide more than 60 percent of the private reinsurance available to Florida’s domestic insurers. The other eligible reinsurers are from Germany and the United Kingdom
Other reinsurers authorized under the law in Florida include:Hannover Ruckversicherung AG (Hannover Re – Germany), Hannover Re (Bermuda), XL Re Ltd., Ace Tempest Reinsurance, Hiscox Insurance Co., Partner Reinsurance Co., Renaissance Reinsurance, Tokio Millennium Re Ltd. (Tokio), Allied World Assurance Co.LTD (Allied), and Montpelier Reinsurance Ltd (Montpelier).
Topics Florida Reinsurance
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