LONDON, Feb 18 (Reuters) - Florida Citizens Property Insurance Corporation will sell $250 million of hurricane coverage to investors in 2013 to recoup some of the cost of covering natural disasters in the state, the insurer said.
Florida Citizens said it would increase its hurricane protection coverage to $1.75 billion this year, by selling an extra $250 million via a “catastrophe bond”, notes from a board meeting showed.
The state-backed insurer sold a $750 million cat bond last year, saying it was cheaper than buying traditional reinsurance for Florida hurricane risk.
Cat bonds allow insurers and reinsurers to pass on some of the natural disaster risk on their books to capital market investors, freeing up capital for other parts of their business.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
- Educational webcasts, resources from industry leaders, and informative newsletters.
- Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
