Aspen Receives Florida Collateral Approval
Bermuda-based Aspen Insurance Ltd. has been approved by the Florida Office of Insurance Regulation to post reduced collateral and operate in Florida as an eligible re/insurer.
This makes Aspen the twelfth Bermuda reinsurer to operate in Florida with similar terms.
Aspen reported capital and surplus of $1.6 billion, which exceeds the $100 million requirement under Florida Statutes. The re/insurer also indicated secure financial strength by demonstrating favourable ratings from two nationally recognised statistical rating bodies.
Florida is the first state to allow ceding insurance companies to receive full credit on their financial statements for reinsurance purchased from non-US based reinsurers that are highly rated, and financially sound.
Several other states are now in the process of adopting similar reduced collateral requirements– including New York, where two Bermuda-based XL subsidiaries were approved to operate under the new rules earlier this year. XL was also the first Bermuda company to be approved under Florida’s revamped collateral requirements.
Other eligible Bermuda reinsurers in Florida include Ace Tempest Reinsurance, Allied World Assurance Company, Alterra Bermuda Limited, Arch Reinsurance Ltd., Hannover Re (Bermuda), Hiscox Insurance Company, Montpelier Reinsurance Ltd, Partner Reinsurance Company, Renaissance Reinsurance, Tokio Millennium Re Ltd., and XL Re Ltd.
