Office Allows Bermuda Reinsurer to Operate with Reduced Collateral Requirements
TALLAHASSEE, Fla. – The Florida Office of Insurance Regulation (Office) today announced an agreement that authorizes a Bermuda-based reinsurance corporation to post reduced collateral requirements to operate in Florida. The Office specifies the terms in an
Order with Tokio Millennium Re Ltd. (Tokio). This announcement makes Tokio the eighth authorized reinsurer to operate under reduced collateral terms in Florida.
"It was nearly one year ago today that the Office concluded its first agreement regarding collateral requirements," said Insurance Commissioner Kevin McCarty. "We are excited to add Tokio to this group to provide another signal to the insurance industry that Florida is a good place to conduct business."
Florida was the first state in the union to modernize collateral requirements. New York has now followed Florida's lead and has begun authorizing reinsurers to operate with reduced collateral requirements.
Florida's Legislature made sweeping insurance reforms as a result of the 2007 Property Insurance Special Session. In September 2008, the Florida Cabinet approved a subsequent
rule based on the 2007 legislation, which allowed the Office to establish lower collateral requirements for non-U.S. reinsurers that are highly-rated and financially sound.
Previously approved companies in Florida include: Hannover Ruckversicherung AG (Hannover Re – Germany), Hannover Re (Bermuda), XL Re Ltd., Ace Tempest Reinsurance, Hiscox Insurance Company, Partner Reinsurance Company and Renaissance Reinsurance.
Tokio reported having $1.2 billion in surplus in 2009, exceeding the required $100 million. The applicant also reported secure financial ratings from at least two nationally recognized statistical rating organizations. Tokio is organized and controlled under parent company Tokio Marine Holdings, Inc., which is a Japanese corporation whose shares are traded on the NASDAQ Stock Exchange under the symbol "TKOMY."