Bermuda-based Endurance Specialty Insurance was approved to reinsure property/casualty coverage in Florida under the state’s reduced collateral program, according to a statement from Florida’s Office of Insurance Regulation Friday.
Endurance became the 19th reinsurer admitted to sell coverage in Florida – and the 17th Bermuda-domiciled entity — since the state reworked its eligibility statutes to accommodate foreign reinsurers in 2007.
The consent order only applies to writing catastrophe reinsurance and expires on December 31, 2013, according to the filing.
Under legislation passed in 2007 foreign reinsurers were allowed to post lower collateral in order to compete for business in the Sunshine State. In addition, Florida carriers are able to receive full credit on their financial statements for reinsurance purchased from foreign reinsurers “that are highly rated, and financially sound. “
In addition to having an acceptably high credit rating, Endurance “reported capital and surplus of $2.4 billion on their most recent year-end financial statement as of December 31, 2011 which exceeds the $250 million requirement [under the law],” the filing said.
A spokeswoman for the Florida Insurance Office said that no other applications were outstanding.
Endurance joins 18 other eligible reinsurers in Florida including : 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.; Hannover Re (Bermuda) Ltd.; Hannover Ruckversicherung AG; Hiscox Insurance Company (Bermuda) Limited; Montpelier Reinsurance Ltd.; Partner Reinsurance Company Ltd.; Platinum Underwriters Bermuda, Ltd.; Renaissance Reinsurance Ltd.; Tokio Millennium Re Ltd.; Underwriters at Lloyd’s, London; and XL Re Ltd.
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