Bermuda-based Renaissance Reinsurance Ltd. has been approved to participate in Florida’s property reinsurance marketplace with modified collateral requirements.
In 2007, Florida lawmakers passed legislation that authorized the Office of Insurance Regulation to establish lower collateral requirements for non-United States based reinsurers that are highly-rated and financially sound.
Florida Insurance Commissioner Kevin McCarty has now approved a total of seven reinsurance companies to operate in Florida under modified terms. The six companies approved earlier this year include Hannover Ruckversicherung AG (Hannover Re), Hannover Re (Bermuda) Ltd., XL Re Ltd., Ace Tempest Reinsurance Ltd., Hiscox Insurance Co. (Bermuda) Ltd., and Partner Reinsurance Co. Ltd.
As of Dec. 31, 2009, Renaissance Reinsurance Ltd. had $1.49 billion in statutory capital and surplus as reported in its statutory financial return on a stand-alone basis. A.M. Best rates the financial strength of the company as A+ (Superior); Standard & Poor’s ranks the company’s financial strength as AA- (Very Strong).
Following Hurricane Andrew in 1992, Renaissance Re was incorporated in Bermuda as a wholly owned subsidiary of RenaissanceRe Holdings Ltd. to provide additional capacity to Florida’s property insurance marketplace, and to provide catastrophe insurance around the world.