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Florida carrier performance worsens in 2020, even though hurricanes missed

Florida's homeowner's insurance carriers are struggling with their performance in 2020 and reporting significantly elevated combined ratios despite the fact this year's hurricane activity largely avoided the State. In a new report, Fitch Ratings explains that, "Florida homeowners' insurance specialists are reporting continued performance deterioration and a decline in capitalization levels." This read the full article →

Southern Fidelity affirmed by Demotech after Hudson Structured investment

Demotech, Inc. affirmed the ratings of previously under-pressure Florida primary insurance carrier Southern Fidelity Insurance Company, citing the investment made by Hudson Structured Capital Management Ltd. as a driver for its renewed confidence in the insurer. As we explained recently, Southern Fidelity and its parent Capitol Preferred Insurance Company were said read the full article →

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 →

Hudson Structured takes majority stake in Southern Fidelity

Hudson Structured Capital Management Ltd., which enters into insurance and reinsurance investment business as HSCM Bermuda, has taken a majority stake in under-pressure Florida primary insurance carrier Southern Fidelity Insurance Company. As we explained last week, Southern Fidelity and its parent Capitol Preferred Insurance Company were on the verge of becoming read the full article →

Two Florida carriers likely to head into receivership within days

Sources tell us that two Florida primary insurance carriers are likely to head into receivership and be deemed insolvent within a matter of days, with the regulator set to act perhaps as soon as Monday. The Florida Office of Insurance Regulation has been keeping a close watch on a number of read the full article →

Florida market challenges mean investors aren’t lining up: TigerRisk execs

The cyclical nature of the Florida property insurance market is just one of the challenges facing those operating there, with issues around claims litigation, assignment of benefits (AOB) and its exposure to hurricanes and severe weather all making for a marketplace that is difficult to navigate. But the challenges faced in read the full article →

Hudson Structured to take majority control of Weston

Hudson Structured Capital Management Ltd., the insurance-linked securities (ILS), reinsurance- and transportation- focused investment manager, is expected to take majority control of windstorm focused primary insurance group Weston Insurance Holdings Corporation, after a recent capital restructuring and increased investment in the carrier. Hudson Structured, which undertakes insurance and reinsurance investment business read the full article →

Florida rates may still not cover true cost of risk: Nottingham, Hiscox Re & ILS

When thinking about the recent firming or even hardening of the Florida reinsurance market at the June renewals, it's important to understand that even the rate increases achieved may not always be sufficient to cover the true cost of risk in the state, according to Ross Nottingham of Hiscox Re read the full article →

Weston & its acquiree Anchor have ratings withdrawn by Demotech

Windstorm focused primary insurance carrier Weston Insurance Company has had its rating withdrawn by Demotech, which market sources suggest may be partly down to challenges it faced in filling out its reinsurance tower at the recent renewals. Weston Insurance Company is an admitted carrier, operating in Florida, Texas, Alabama, Mississippi and read the full article →

Covid-19 “live cat” puts reinsurance into “sustainable hardening” – JMP Securities

The Covid-19 pandemic is like a "live cat" for the reinsurance industry, one that will keep on driving losses, and this combined with the challenges caused by recent consecutive catastrophe loss years appears to have driven the market into a phase of "sustainable hardening," analysts at JMP Securities have said. Having read the full article →