Palomar Holdings, a speciality California-headquartered insurer, has renewed some of its earthquake reinsurance programs covering California earthquake risk, buying incremental reinsurance limit as well, despite an “unquestionably” hard reinsurance market.
The insurer said that it has renewed its California Commercial Earthquake quota share reinsurance program, increased the cession percentage, and secured additional earthquake excess of loss (XOL) limit.
In total, Palomar said it has purchased roughly $50 million of incremental limit, which according to the announcement, has been purchased to enable the company to “capitalise on opportunities it sees in the residential and commercial earthquake insurance markets.”
Commenting on the news, Mac Armstrong, Palomar’s Chairman and Chief Executive Officer, said: “In the face of what is unquestionably a hard reinsurance market, we are pleased to not only successfully renew our California Commercial Earthquake quota share program but also procure incremental reinsurance limit to support our earthquake lines.
“We strategically increased the cession amount of the California Commercial Earthquake quota share to provide flexibility in how we participate in the commercial earthquake market and moreover take advantage of dislocation in the earthquake market broadly.
“We appreciate the support of our reinsurer panel and believe that our single peril business lines remain attractive to this cohort of reinsurers and the market broadly.”
