Insight and Intelligence on (Re)insurance Convergence with the Capital Markets

23 November 2017

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UPC, FedNat, Universal among Floridians relying on ILS

8 September 2017

The Florida insurers that make heavy use of reinsurance from ILS managers include UPC Insurance, Universal and Federated National.

As one of the leading reinsurers in the state, Nephila Capital has a wide range of relationships amongst the state's largest insurers, while the smaller ILS funds tend to show up on only a few of the programmes for the top local carriers.

According to schedule F data on reinsurance cessions last year, Nephila took a significant share of the premium spent by companies including People's Trust, Universal and UPC - via various entities and fronting partner Allianz Risk Transfer. ILS FLorida relationships

While this data relates to last year's programmes, following recent renewals Nephila is known to write a major quota share for UPC Insurance and together with Greenlight Re will cover 20 percent of the carrier's wind losses.

UPC also placed 70 percent of its overall cat treaty on a collateralised basis.

Meanwhile, the relationships Everest Re - the sponsor of the Mt Logan sidecar - had last year saw it accept a notable share of premium from Security First, FedNat, Universal, as well as UPC.

Another leading Florida writer Aeolus took premium from UPC and FedNat, as well as Heritage and Florida Peninsula.

Among other ILS funds active in Florida with smaller groups of relationships, Elementum had exposure via UPC and Florida Peninsula while Securis Investment Partners covered Heritage, UPC and FedNat.

LGT Capital Partners took a small slice of FedNat and Florida Citizens premiums last year, but this year also put down a $75mn line on the Florida Hurricane Catastrophe Fund (FHCF) treaty.

Nephila, Everest Re and RenaissanceRe were among the leading reinsurers of some of the top Florida insurers in 2016, according to data collated by Trading Risk.

The Bermudian asset manager had cut back its exposure compared to 2015, but still captured just over $200mn of premium ceded by 10 leading Florida insurers in 2016.

Everest was close behind with a similar share of premiums, assuming $196mn.

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