News Release: Florida Office of Insurance Regulation Authorizes Non-U.S. Reinsurer to Operate with Reduced Collateral Requirements
Mar 2, 2011
The following news release was issued by the Florida Office of Insurance Regulation on March 2, 2011:
Office Authorizes Non-U.S. Reinsurer to Operate with Reduced Collateral Requirements
TALLAHASSEE, Fla. – The Florida Office of Insurance Regulation (Office) today announced
the ninth agreement of its kind, which authorizes a reinsurer to post reduced collateral
requirements to operate in Florida. The Office specifies the terms in a Consent Order with Allied
World Assurance Company, LTD (Allied), a Bermuda-based company. This announcement
makes Allied the eighth authorized Bermuda reinsurer to operate with similar reduced collateral
terms; the other reinsurer was from Germany.
“We are encouraged by the number of reinsurers who are participating in Florida’s market by
taking advantage of the reduced collateral requirements,” said Insurance Commissioner Kevin
McCarty. “Reinsurers continue to provide a critical risk-sharing role in Florida’s complex
property insurance market.”
Allied reported a capital and surplus of more than $3 billion, which exceeds the $100 million
requirement. The reinsurer also indicated secure financial strength by demonstrating favorable
ratings from at least two nationally recognized statistical rating organizations.
Reinsurance continues to be an important part of the property insurance market in the United
States. In 2005, Hurricanes Katrina, Wilma and Rita caused an estimated $72.7 billion in insured
losses; reinsurers paid roughly 61 percent of this total cost.
About the Florida Office of Insurance Regulation
The Florida Office of Insurance Regulation (Office) has primary responsibility for regulation,
compliance and enforcement of statutes related to the business of insurance and the monitoring
of industry markets. For more information about the Office, please visit www.floir.com. If you
would like to review and compare homeowners insurance rates in Florida, go to
www.shopandcomparerates.com.