Everglades Re II Ltd Series 2017-1

The insurance-linked securities (ILS) fund market and other collateralized reinsurance sources took a roughly 42% chunk of the latest renewal placed by Florida’s Citizens Property Insurance Corporation at June 1st this year.

Florida’s Citizens Property Insurance Corporation settled on a slightly smaller reinsurance tower at its recent 2019 renewal as it only partially placed some layers. But the end result for its coastal account was a reduced average rate-on-line, compared to the previous year.

The risk transfer planning at Florida’s Citizens Property Insurance Corporation is underway after a board meeting that approved a $110 million budget to secure $703 million of fresh reinsurance coverage for 2019.

Florida’s Citizens Property Insurance Corporation is set to buy a larger reinsurance program for 2019 as it adds $200 million of coverage for non-coastal residential properties its covers following increasing losses from hurricanes, non-weather water-loss claims, litigation and assignment of benefits abuse.

The board of governors of Florida’s Citizens Property Insurance Corporation has approved the purchase of a $1.42 billion reinsurance program for 2018, which is a 7% increase on the total limit of risk transfer secured last year and with more of the coverage from the capital markets via Everglades Re cat bonds.

Florida’s Citizens Property Insurance Corporation said yesterday that it expects to have to pay around $1.23 billion of insured losses for claims from Hurricane Irma, but expects to pay for this out of surplus, suggesting the coastal account has not had a big enough hit to eat into its reinsurance protection.

A whopping 42% of the limit placed for Florida’s Citizens Property Insurance Corporation’s reinsurance renewal was sourced from collateralized markets and insurance-linked securities (ILS) fund managers, as third-party capital continued to grow its share of the shrinking program.

According to sources, Florida’s Citizens Property Insurance Corporation’s latest catastrophe bond transaction, the Everglades Re II Ltd. (Series 2017-1) deal,  is set to upsize to $300 million in size before it completes.

The board of governors of Florida’s Citizens Property Insurance Corporation has approved the purchase of $1.33 billion of reinsurance coverage in its upcoming 2017 renewal, with a combination of traditional reinsurance and capital markets coverage provided by the Everglades Re II Ltd. (Series 2017-1) catastrophe bond deal.

The coupon price guidance has been lowered on Florida’s Citizens Property Insurance Corporation’s latest catastrophe bond transaction, the Everglades Re II Ltd. (Series 2017-1) deal, signalling continued strong appetite for new risk from investors despite the recent brisk issuance.