TheFlorida Office of Insurance Regulation(OIR) has signed a Consent Order that allows a fourteenth reinsurer,AXIS Specialty Ltd., to post reduced collateral and operate in Florida as an eligible reinsurer. ThisConsent Ordermakes AXIS the thirteenth Bermuda reinsurer to operate in Florida with similar terms; the first reinsurer to operate with similar terms is from Germany.
In September 2008 Florida’s Cabinet approved a rule based on legislation from the state’s 2007 special session that allowed the OIR to establish lower collateral requirements for non-U.S. reinsurers that are highly-rated and financially sound. These changes were made in an effort to encourage additional reinsurance in Florida and to attract more capital to the property insurance market.
AXIS reported capital and surplus of $4.2 billion, which exceeds the $100 million requirement. The reinsurer also indicated secure financial strength by demonstrating favorable ratings from two nationally recognized statistical rating organizations.
Other eligible reinsurers in Florida include:Ace Tempest Reinsurance, Allied World Assurance Co. LTD, Alterra Bermuda Limited, Arch Reinsurance Ltd., Aspen Insurance Limited, Hannover Re (Bermuda), Hannover Re (Germany), Hiscox Insurance Co., Montpelier Reinsurance Ltd, Partner Reinsurance Company, Renaissance Reinsurance, Tokio Millennium Re Ltd., and XL Re Ltd.