Illinois, Indiana, New Jersey and Louisiana are considering similar revised requirements
Arch Reinsurance has become the twelfth insurer to gain approval for operating with reduced collateral status in Florida.
Florida is the first state to allow ceding insurance companies to receive full credit on their financial statements for reinsurance purchased from non-U.S. based reinsurers that are highly rated, and financially sound.
New York state has adopted similar terms. Illinois, Indiana, New Jersey and Louisiana are among other states considering these revised requirements.
Arch reported capital and surplus of $4.26 billion, which exceeds the $100 million requirement. The reinsurer also indicated secure financial strength by demonstrating favorable ratings from two nationally recognised statistical rating organisations.
Other eligible reinsurers in Florida include Hannover Re (Germany), Hannover Re (Bermuda), XL Re, Ace Tempest Reinsurance, Hiscox Insurance Company, Partner Re, Renaissance Re, Tokio Millennium Re (Tokio), Allied World Assurance Company, Montpelier Re and Alterra Bermuda.