Lloyd's will now only have to hold 20% collateral for reinsurance business its members write in New York.
The New York Insurance Department has approvaed Lloyd's as a Secure-3 reinsurer, reducing its collateral requirements to 20% from 100%.
“Foreign reinsurers play an important part in supporting the US insurance industry and the steps taken by some individual states to reduce collateral requirements are to be welcomed," said Lloyd's Norh America director Sean McGovern. "However, our goal remains the complete and consistent removal of discriminatory collateral requirements in the US.”
Lloyd's has joined a growing list of non-US reinsurers who have been approved to hold lower collateral in New York. Several non-US reinsurers, among them Hannover Re and Tokio Millennium, have also won lower collateral requirements in Florida.