The National Association of Mutual Insurance Companies (NAMIC) Board of Directors voted Wednesday to endorse an offshore property catastrophe facility that will be available exclusively to member companies.
Renaissance Reinsurance Ltd. located in Hamilton, Bermuda, will accept property catastrophe reinsurance submissions for underwriting beginning immediately and open Jan. 1, 2002. Renaissance Reinsurance Ltd. is rated “A+” by A.M. Best and Standard & Poor’s and has a policyholder surplus of $750 million.
“This should be a very attractive arrangement for NAMIC member companies,” said Jerry Wollam, president of the NAMIC Insurance Company (NAMICO). “It will be a lead property cat facility. To access it, member companies simply need to have their broker submit the normal underwriting information to Renaissance Re with a reference that they want to be included in the NAMIC Cat Facility. Further, RenRe does not intend to impose any zone limitations and will begin quoting and binding effective immediately.”
Member companies will be able to obtain reinsurance and participate in the pool’s profits at the same time. The profit commission will be based upon pooled NAMIC members’ performance over a five-year period beginning Jan. 1, 2002.
Renaissance Re will underwrite and offer terms on approximately 25-50 percent of the limits on a program. The maximum authorization on a program is 50 percent of the limits or $50 million in premium, whichever is less.
RenaissanceRe Holdings Ltd. provides reinsurance and insurance coverage where the risk of natural catastrophe represents a significant component of the overall exposure. Information about Renaissance Re as well as all of its other subsidiary companies and the nature of their businesses can be found at www.renre.com.
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