Following the agreement reached back in February of this year with the Florida Office of Insurance Regulation allowing Hannover Re – as the first foreign reinsurer in the world – to qualify as a so-called “Eligible Reinsurer”, its subsidiary Hannover Re (Bermuda) Ltd. now also enjoys this status.
This enables the company to write its non-life reinsurance business in Florida under improved conditions: while foreign reinsurers have hitherto been obliged to post collateral for 100 percent of the loss reserves, the required level for Hannover Re (Bermuda) Ltd. in property catastrophe reinsurance is now just 20 percent.
“We welcome the decision of the Florida Office of Insurance Regulation and hope that other US states will also reduce the collateral requirements for foreign reinsurers”, Hannover Re’s Chief Executive Officer Ulrich Wallin stated.
Florida is so far the only US state to approve a rule imposing lower collateral requirements on alien reinsurers that are highly rated and financially secure.
Source : Hannover Re Press Release
