Everglades Re II Ltd Series 2021-2

Florida’s Citizens Property Insurance Corporation is debating buying anything from zero to over $3.4 billion of new reinsurance and risk transfer in 2022, with catastrophe bonds an option as usual.

The staff of Florida’s Citizens Property Insurance Corporation have published a white paper calling on the Board of the insurer of last resort to publicly support a plan to procure risk transfer, through reinsurance and catastrophe bonds, for 2022.

In 2022, there is a strong chance Florida’s Citizens Property Insurance Corporation buys more private market risk transfer in the form of reinsurance and catastrophe bonds through its Everglades Re program, although the Board has directed a review of risk transfer versus pre-event financing to see how money can be saved.

Florida’s homeowners insurance market is experiencing “unsutainable” conditions and the consistency of loss across the marketplace is seen as “staggering”, according to the CEO of Florida’s Citizens Property Insurance Corporation Barry Gilway.

Florida’s Citizens Property Insurance Corporation continues to see increasing policy counts as ongoing challenges in the private market drive policyholders back to the residual market, resulting in expanding exposure levels and putting depopulation, or takeouts, back in focus.

Third-party sources of reinsurance capital, largely from the insurance-linked securities (ILS) market, has dominated the reinsurance renewal of Florida’s Citizens Property Insurance Corporation in 2021, with ILS giant Nephila Capital the biggest market by a long way thanks to a $600 million line.

Florida’s Citizens Property Insurance Corporation has now secured its upsized $950 million target for its latest Everglades Re II Ltd. (Series 2021-1 & 2021-2) catastrophe bonds, making them the insurers second largest slice of reinsurance from the capital markets on record.

Citizens Property Insurance Corporationis set to significantly increase the amount of capital market backed reinsurance it has in-force from catastrophe bonds, with its latest Everglades Re II Ltd. (Series 2021-1 & 2021-2) issuances now targeting between $800 million and $950 million of coverage.

Florida’s Citizens Property Insurance Corporation is back in the catastrophe bond market with a $500 million or greater dual-series Everglades Re II Ltd. (Series 2021-1 & 2021-2) transaction, from which it is seeking reinsurance protection for both its Coastal and Personal Lines account books.