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Rising combined ratios, lower capital, to drive Florida reinsurance demand

At the upcoming mid-year reinsurance renewals our sources suggest there could be increased demand for reinsurance protection coming out of Florida, despite the delicate financial position of many insurance carriers focused on the state. The twin effects of another year of elevated combined ratios for Florida's insurance carrier cohort, alongside the read the full article →

Demotech warns some Florida carriers must “markedly improve” in 2021

With thoughts turning to the key mid-year reinsurance renewals and negotiations already underway for many Florida domestic insurance carriers, rating agency Demotech has warned that nine carriers need to report "markedly improved operating results in 2021" to sustain their current rating level. Following up on its warning ten days ago that read the full article →

Access to capital key in “dysfunctional” Florida insurance market

Florida's insurance marketplace needs targeted legislative reform to address the numerous issues being faced by carriers in the state according to Demotech, while access to additional capital remains key for the "dysfunctional" marketplace. Rating agency Demotech, Inc. has laid out some of the issues facing Florida's property insurers, citing an urgent read the full article →

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 →