Homeowners Choice – Florida’s biggest private homeowners issuer – increased its private reinsurance
contract by $100 million and upped its single loss coverage by nearly $200 million for the 2012-2013 contract year.
The newly inked private reinsurance program gives Homeowners $282 million of coverage, including a $9 million retention but excluding $10 million of coverage provided by a Homeowner’s subsidiary, according to a filing with the Securities and Exchange Commission. Homeowners also increased its single-loss coverage from $357 million to $549 million, filings state.
The total cost the reinsurance program, which runs from June through May 2013, is approximately $92 million, according to the filing
That compares with 2011 hurricane season contract that gave homeowners $116.6 million of coverage with the same $9 million exclusion. The cost of that contract was $55.3 million, according to last year’s numbers
Private reinsurers listed as 2012-2013 provides are Amlin AG, Aeolus Reinsurance Ltd., Renaissance
Reinsurance Ltd., Montpelier Reinsurance Ltd., “various Lloyd’s syndicates” and Berkshire Hathaway’s National Liability & Fire Insurance. The filing added that private reinsurers will cover hurricanes, tropical
storms, tornados and other catastrophes” but Berkshire will only cover storms designated as hurricanes by the National Hurricane Center.
In addition to the private reinsurers, Homeowners singed with the Florida Hurricane Catastrophe Fund (FHFC) to provide up to $249.5 million of coverage for the next year at an estimated cost is $19 million, filings show. That compares with last year’s FHCF contract that covered $232 million at a cost of $21.9 million.
Earlier this year Homeowners announced that Scott Wallace, who resigned as CEO of Citizens Property insurance, would take over as president of its property/casualty division.
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