Florida has added one more name to the growing list of offshore reinsurers who can do business in the state under a new law allowing them to reduce their capital and collateral requirements.
The Florida Office of Insurance Regulation has signed a consent order that will allow Platinum Underwriters Bermuda Ltd., to become the 16 Bermuda reinsurer to operate in Florida under the new surplus terms.
In an effort to attract more private capital to the state, lawmakers in 2009 passed a law allowing off-shore reinsurers looking to do business in the state to reduce their collateral to 20 percent as opposed to 100 percent if they meet certain criteria. Specifically, the law calls for reinsurers to have at least $100 million in capital and surplus and score a top rating by at least two nationally recognized rating agencies.
Platinum Underwriters reported capital and surplus of $1.366 billion, which exceeds the $250 million financial requirement. The reinsurer also received favorable ratings from two statistical rating organizations deemed acceptable by the state.
Florida is the first state to allow ceding insurance companies to receive full credit on their financial statements for reinsurance purchased from non-U.S. based reinsurers that are highly rated and financially sound. New York has adopted a similar law, while New Jersey, Illinois, Indiana and Louisiana are also considering similar measures.
Platinum Underwriters joins Ace Tempest Reinsurance Ltd, Allied World Assurance Company Ltd., Alterra Bermuda Limited, Arch Reinsurance Ltd., Ariel Reinsurance Company Ltd., Aspen Insurance Limited, Axis Specialty Limited, DaVinci Reinsurance Ltd., Hanover Re (Bermuda) Ltd., Hannover Ruckversicherung AG, Hiscox Ins. Co.) Bernuda Limited, Montpelier Reinsurance Ltd., Partner Reinsurance Company, Ltd., Renaissance Reinsurance Ltd., Toko Millennium Re Ltd., Underwriters at Lloyd’s London and XL Re Ltd.
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