The TWIA Board of Directors met today and approved the renewal of a line of credit to allow for quickly paying claims in the event of a catastrophic storm impacting the Texas coast this year. The $500 million line of credit from JP Morgan Chase Bank and Bank of America will allow the Association to pay claims that would eventually be funded by member insurance company assessments and/or public securities as provided by statute.
The Board declined to direct TWIA staff to purchase additional reinsurance above the Association’s 1-in-100 probable maximum loss of $4.03 billion for the 2021 storm season. The Board previously voted to direct staff to place a combination of catastrophe bonds and traditional reinsurance in an aggregate amount totaling $1.9 billion in excess of $2.1 billion in statutory funding.
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