Allied World Bermuda Approved By Florida
Allied World Assurance Company Holdings announced today [Mar. 3] that Allied World Bermuda received approval from the state of Florida to qualify as an “Eligible Reinsurer,” which allows lower collateral requirements on non-domestic reinsurers that are highly rated and financially secure.
Allied World will now be able to post 20 percent of loss reserves on property catastrophe reinsurance in Florida rather than the 100 percent required by most non-US reinsurers. Florida is currently among a small group of states within the US to approve this rule, effectively lowering the barriers of entry into the market for non-US reinsurers.
The Florida Office of Insurance Regulation reviews reinsurers for approval after companies undergo a selective application process requiring them to have capital and surplus of at least $100 million, proof of financial strength by at least two nationally recognised rating organizations, and evidence of continued financial soundness and stability.
Earlier this week another Bermuda reinsurer, Tokio Millennium Re Ltd., also won approval to operate in the Florida market under modified terms. XL’s Bermuda operations were the first to be granted this status in Florida and since then a number of other Bermuda reinsurers have also reached modified collateral agreements with the hurricane-prone Sunshine State.
Allied World Assurance Company Holdings, AG, which redomiciled its headquarters from Bermuda to Switzerland last year, maintains a strong local presence. Through its subsidiaries, the firm is a global provider of innovative property, casualty and specialty insurance and reinsurance solutions. Its insurance and reinsurance subsidiaries are rated A (Excellent) by A.M. Best Company, and our Lloyd’s Syndicate 2232 is rated A+ (Strong) by Standard & Poor’s and Fitch.
