NU Online News Service, Jan. 3, 2:46 p.m. EST

Add Bermuda's Renaissance Reinsurance Ltd. to the list of foreign reinsurers taking advantage of Florida's reduced collateral requirements.

Seven reinsurers now operate in Florida under the modified terms passed by lawmakers in 2007 for companies based outside of the United States that are financially sound, according to the state Office of Insurance Regulation.

The measure was meant to attract private capital to Florida in order to take on the state's catastrophe risk and lower costs for insurers. Florida is the first state to lower collateral requirement for reinsurers based outside the U.S.

In November Ace Tempest Reinsurance Ltd., Hiscox Insurance Company [Bermuda] Limited and Partner Reinsurance Company Ltd. joined Germany-based Hannover Re, its Bermuda subsidiary and XL Re Ltd. in Florida.

Before the legislation, foreign reinsurance companies had to provide full collateral in Florida to do business there. U.S. reinsurers post no collateral.

Renaissance Re, a subsidiary of Renaissance Re Holdings, Ltd., was incorporated in Bermuda in 1993.

Special Reports /

Renaissance Re Joins Fla.'s List Of Reduced Collateral Companies

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