Florida Hurricane Catastrophe Fund


FHCF’s hurricane Irma loss creeps over 8% in 2020 to $6.5bn

The Florida Hurricane Catastrophe Fund's (FHCF) ultimate loss from 2017's hurricane Irma has continued to creep higher in 2020, rising from $6 billion booked at the end of 2019 to $6.5 billion as of October 2020. At the same time, the FHCF's ultimate loss from 2018's hurricane Michael has not inflated read the full article →

FHCF won’t renew reinsurance due to Florida market conditions

The Florida Hurricane Catastrophe Fund (FHCF) has decided not to renew its reinsurance program in 2020, citing reduced reinsurance market capital levels and in response to the firming marketplace. It's the latest clear sign of the hardening of Florida reinsurance rates, which as we explained last week sees rates increasing broadly read the full article →

Florida market strains may drive reinsurance & private debt demand

The Florida insurance market is in a state of flux, as strains from recent years have begun to drive ratings assessments and a situation where capitalisation is key, leading to a number of carrier disposals and a likelihood that both reinsurance capital and private debt will become more in-demand. Rating specialist read the full article →

Reinsurance costs a “financial shock”, Demotech warns of Florida downgrades

Demotech, Inc. has issued a warning that some Florida insurance carriers are facing serious challenges, with a number expected to be downgraded, while others could enter run-off if they cannot successfully negotiate a way forwards or attract the necessary capital. The change in the cost of catastrophe reinsurance in the last read the full article →

FHCF renews reinsurance at flat pricing, using more third-party capital

The Florida Hurricane Catastrophe Fund (FHCF) has renewed its reinsurance program at a slightly smaller size of $920 million, but with flat pricing and insurance-linked securities (ILS) players taking a slightly larger share in 2019. Leading the ILS market participation in the FHCF's 2019 reinsurance renewal was Fermat Capital Management, which read the full article →

Reinsurance pricing should reflect Florida legislative reforms: Demotech

Reinsurance pricing for catastrophic events should take into account the impact that recently enacted legislative reforms in Florida will have, although right now just how much they will reduce loss and loss adjustment costs in the state remains to be seen. Rating agency Demotech, Inc. calls for the reforms to be read the full article →

16 carriers affected by Demotech’s raised 130-year reinsurance requirement

Out of the more than fifty Floridian insurance carriers that are rated by Demotech, Inc. roughly two-thirds are already meeting or exceeding the raised requirement to buy first event reinsurance protection to the 1-in-130 year loss level, but 16 may need to buy more coverage. The change to Demotech's reinsurance requirement read the full article →

Demotech raises reinsurance requirements for Florida insurers

Floridian primary insurers would be advised to check their reinsurance plans as the renewal fast approaches, after Demotech, Inc. updated its first-event reinsurance requirements to mandate that a 1-in-130 year loss event be covered. The figure has been increased in 2019 from a requirement that reinsurance should cover a 100 year read the full article →

Optimism persists on Florida renewal pricing, despite FHCF increases

Reinsurance and ILS markets remain optimistic on the potential for relatively significant price increases at the next Florida renewals in June, despite the fact some insurers are increasing their FHCF participation rates. Heritage Insurance Holdings, Inc. doubled its Florida Hurricane Catastrophe Fund (FHCF) participation to 90% it has emerged and as read the full article →

FHCF’s $1bn 2018 reinsurance renewal came in 4% cheaper (net)

The $1 billion Florida Hurricane Catastrophe Fund (FHCF) reinsurance program renewal at June 1st came in at a cost that was roughly 4% cheaper on a net basis, despite the fact the attachment point had been lowered effectively making the program layer a riskier underwriting opportunity. It's a successful result for read the full article →