NY Grants Approval To Hiscox Bermuda
Hiscox Bermuda — a subsidiary of Hamilton-based international specialist insurer Hiscox Ltd. — announced today [Nov.22] it has been awarded Certified Reinsurer status by the New York Department of Financial Services.
Hiscox Bermuda’s secure financial strength rating means it is now permitted to post collateral of 20 percent of loss reserves rather than 100 percent, as was previously required.
New York is one of a number of US states to follow Florida’s lead by reducing collateral requirements for non-US reinsurers that are highly rated and financially sound, with the intention of increasing available reinsurance capacity for US cedants.
Earlier this year Bermuda’s XL became the first local re/insurer to have the collateral requirements waived in New York.
Hiscox Bermuda was permitted by the Florida insurance regulator to reduce its collateral requirements in October 2010.
Krystalle Tobin, Chief Financial Officer, Hiscox Bermuda, said: “We are delighted the New York Department of Financial Services has granted Hiscox Bermuda with Certified Reinsurer status.
“Reducing collateral requirements improves the reinsurance market for local insurers looking for more capacity and choice.
“With the National Association of Insurance Commissioners [NAIC] recently passing the credit for reinsurance model law changes, we are optimistic that other states will move to implement similar reduced collateral requirements.”
Hiscox Bermuda is rated “A” by AM Best and Fitch Ratings.
