Everglades Re Ltd

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 is targeting a $2.6 billion reinsurance and risk transfer program in advance of the 2021 hurricane season beginning and within the renewed towers could be $850 million of new catastrophe bonds.

The issue credit rating on Florida’s Citizens Property Insurance Corporation’s $1.5 billion Everglades Re Ltd. (Series 2014-1) catastrophe bond has been increased after the cat bond was reset at a lower attachment point and the lowest attachment probability.

The $250m Everglades Re Ltd. (Series 2013-1) catastrophe bond, sponsored by Florida’s Citizens Property Insurance Corporation in March 2014, has had its rating upgraded as it has now passed its final reset and there are no more chances to adjust the risk-level.

As we wrote back in December, the Board of Florida Citizens approved sponsoring another Everglades Re Ltd. catastrophe bond as part of its 2015 risk transfer program, which will seek around $4.05 billion of reinsurance protection for the insurer.

Florida’s Citizens Property Insurance Corporation is one of the first catastrophe bond sponsors to opt to use a variable reset facility with its Everglades Re Ltd. (Series 2013-1) catastrophe bond, by choosing to lower the attachment point.

Florida’s Citizens Property Insurance Corporation, which managed to purchase $1 billion of additional reinsurance protection in 2014 for lower spend than in 2013, is set to lower seven out of ten of its primary insurance customers rates in 2015.