Alterra Bermuda Receives Florida Approval
Alterra Capital Holdings Limited announced today [Mar.28] that Alterra Bermuda Limited 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.
Alterra Bermuda Limited 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-U.S. reinsurers. Florida is currently among a small group of states within the U.S. to adopt this rule, which effectively lowers the barriers of entry into the market for non-U.S. 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 recognized rating organizations, and evidence of continued financial soundness and stability.
