NU Online News Service, Nov. 9, 2:14 p.m. EST

Three more foreign reinsurers–all based in Bermuda–have reached agreements with the Florida Office of Insurance Regulation to participate in the state's insurance market under modified regulatory terms.

Ace Tempest Reinsurance Ltd., Hiscox Insurance Company [Bermuda] Limited, and Partner Reinsurance Company Ltd. will be allowed to post reduced collateral while doing business in Florida.

Reinsurance companies based outside of the United States previously had to provide full collateral in Florida to do business there. But legislation passed two years ago allows a reinsurer to post reduced collateral as long as it is highly-rated and financially sound.

U.S. reinsurers post no collateral.

Previously, OIR spokeswoman Brittany Benner said the measure was meant to attract private capital to Florida,. The state hopes more foreign reinsurance carriers will follow to take on Florida's massive catastrophe risk and lower costs for insurers.

Bermuda-based XL Re Ltd., Germany-based Hannover Re, and Hannover Re's Bermuda subsidiary have previously reached similar agreements with Florida.

Special Reports /

3 Bermuda Reinsurers Reach Reduced Collateral Agreements With Fla.

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