The Florida Office of Insurance Regulation (OIR) has signed agreements with three Bermuda-based reinsurers to participate in Florida's insurance marketplace under modified regulatory terms. The three companies are Ace Tempest Reinsurance Ltd., Hiscox Insurance Co. [Bermuda] Limited, and Partner Reinsurance Company Ltd.
During the 2007 special session, lawmakers passed legislation that authorized OIR to establish lower collateral requirements for alien (non-U.S.) reinsurers that are highly rated and financially sound. With this action, OIR has now authorized a total of six reinsurance companies to operate in Florida under these modified terms. The three companies approved earlier this year are Hannover Reinsurance, Hannover Insurance (Bermuda), and XL Re Ltd.
"Florida has played a key role in modernizing the U.S. reinsurance market," remarked Insurance Commissioner Kevin McCarty. "These collateral agreements are intended to encourage additional investment in Florida's property insurance marketplace."
All three of the recently approved companies were organized under the laws of Bermuda. As of Dec. 31, 2009, all three companies had in excess of the $100 million surplus required under Section 624.610(3)(e), Florida Statutes. Ace Tempest Re reported $5.1 billion in surplus, Hiscox reported $808 million in surplus, and Partner Re reported $3.4 billion in surplus. All three companies also secured a financial rating indicating financial strength from at least two nationally recognized statistical rating organizations and presented information to the OIR substantiating their continued financial stability.
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