The Lloyd’s of London will now have the opportunity to operate in the state of Florida. The Florida Office of insurance Regulation agreed and signed a consent order allowing Lloyd’s of London underwriters to post reduced collateral and operate as an eligible reinsurer.
Lloyd’s represents one of the oldest and largest non-U.S. reinsurers in the United States, and will represent the seventeenth eligible reinsurer operating in Florida with similar terms; it is also the first eligible reinsurer operating in Florida headquartered in the United Kingdom.
Sean McGovern, General Counsel and Director of Lloyd’s America said: “We are very pleased the Florida Office of Insurance Regulation has recognised Lloyd’s financial security and approved our application for reduced collateral.
“Lloyd’s is committed to providing insurance and reinsurance to protect people and businesses in Florida. And the Florida Insurance Office and State of Florida have given us a clear signal that Florida is pro-business and actively encouraging investment.”
Florida is the first state to allow ceding insurance companies to receive full credit on their financial statements for reinsurance purchased from non-U.S. based reinsurers that are highly rated, and financially sound. Lloyd’s reported statutory capital and surplus of $29.9 billion, which exceeds the $250 million requirement. Lloyd’s also indicated secure financial strength by demonstrating favourable ratings from two statistical rating organizations deemed acceptable by the commissioner as having experience and expertise in rating insurers doing business in Florida. Lloyd’s has already been granted status as an eligible reinsurer in the state of New York.
Other eligible reinsurers in Florida include (in alphabetical order): Ace Tempest Reinsurance, Allied World Assurance Company Ltd., Alterra Bermuda Ltd., Arch Reinsurance Ltd., Ariel Reinsurance Company Ltd., Aspen Insurance Ltd., Axis Specialty Ltd., DaVinci Reinsurance Ltd., Hannover Re (Bermuda), Hannover Re (Germany), Hiscox Insurance Co., Montpelier Reinsurance Ltd., Partner Reinsurance Co., Renaissance Reinsurance, Tokio Millennium Re Ltd. and XL Re Ltd.
Source : Florida Office of Regulation
