The National Association of Mutual Insurance Companies (NAMIC) Board of Directors voted Oct. 24 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.
Jerry Wollam, president of the NAMIC Insurance Company (NAMICO) noted that this should be a very attractive arrangement for NAMIC member companies. Wollam commented that 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 starting Jan. 1, 2002.
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