Everglades Re II Ltd

Florida’s residual market insurer, Citizens Property Insurance Corporation, appears likely to return to the catastrophe bond market before the 2023 hurricane season begins, to access indemnity reinsurance protection, as well as its currently in the market and first ever industry-loss trigger cat bond Lightning Re.

Citizens Property Insurance Corporation, the property insurer of last resort for the Florida marketplace, has appointed its General Counsel and Chief Legal Officer Tim Cerio as its new President and CEO, as long-standing leader Barry Gilway retired yesterday.

Citizens Property Insurance Corporation, the property insurer of last resort for the Florida marketplace, expects to grow its policy count by around 46% during 2023, to reach roughly 1.7 million policies in-force by the end of the year.

Florida’s property insurer of last resort Citizens Property Insurance Corporation has provided a modelled estimate of its ultimate losses from recent hurricane Nicole, pegging the total at just $62.5 million.

Florida’s property insurer of last resort Citizens Property Insurance Corporation has significantly increased its loss estimate for hurricane Ian, raising it to $3.8 billion, a level at which some private market reinsurance capacity will likely come into play, but leading it to believe its catastrophe bonds won’t be triggered.

While Florida’s insurer of last resort, Citizens Property Insurance Corporation, has provided a range of projected estimated losses from hurricane Ian of between $2.3 billion and $2.6 billion, if the average claims cost comes in around the levels of 2017’s hurricane Irma, the data could suggest a loss far higher.

Florida’s insurer of last resort, Citizens Property Insurance Corporation, has tightened its estimated range of losses from hurricane Ian, now saying it expects them to fall at between $2.3 billion and $2.6 billion, at which level its private reinsurance recoveries would be small, if any, while its Everglades Re catastrophe bonds could be safe.

Florida’s Citizens Property Insurance Corporation looks set to continue rapidly growing its exposure, with its policy count likely to near record levels again in 2023, according to President and CEO Barry Gilway.

Once again, third-party sources of reinsurance capital, largely from the insurance-linked securities (ILS) market, have dominated the reinsurance renewal of Florida’s Citizens Property Insurance Corporation in 2022, with ILS investment manager Nephila Capital again taking the largest share.

Florida’s Citizens Property Insurance Corporation has now secured its latest catastrophe bond that will provide it $200 million of reinsurance protection, but pricing for the Everglades Re II Ltd. (Series 2022-1) transaction eventually settled above the initial guidance.