Tokio Millennium Re has joined Alterra as the second reinsurer in a week to be granted permission to post reduced collatral in New York state.

The Bermuda-based reinsurer, a subsidiary of Tokio Marine and Nichido Fire Insurance company, has had its collateral limits reduced to 10% from 100% by the New York Insurance Department (NYID).

Tokio Millennium Re is the tenth non-US reinsurer to be granted the special status by NYID. The reinsurer has also been granted similar status in Florida.

Florida has also adopted a system for reduced collatral, while Illinois, Indiana, New Jersey and Louisiana are among other states considering revised collateral requirements.