NU Online News Service, April 4, 1:51 p.m. EDT
Arch Reinsurance Ltd. has become the 12th foreign reinsurer to be approved in Florida to post reduced collateral.
The Office of Insurance Regulation (OIR) says Arch is the 11th reinsurer to be approved from Bermuda. The first, Hannover Re, is from Germany.
The Sunshine State was the first to pass legislation to allow a foreign reinsurer to post reduced collateral as long as it is highly rated and financially sound. Non-U.S. reinsurers formerly had to post full collateral, while U.S. reinsurers post no collateral.
Recently New Jersey and New York adopted similar measures to draw foreign reinsurers to their states. Illinois and Louisiana are considering the new reduced collateral requirements.
Florida requires foreign reinsurers to carry $100 million in capital and surplus to be eligible. Formed in 2002, Arch Reinsurance Ltd. of Hamilton, Bermuda is a subsidiary of Arch Capital Group Ltd. The company has capital and surplus of $4.26 billion, the OIR says.
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