The Florida Hurricane Catastrophe Fund (FHCF) has completed its $1 billion 2018 reinsurance placement, which includes a broad range of global participating reinsurers, that was once again led by RenaissanceRe (RenRe) and which included increased participation from Swiss Re.
The FHCF announced earlier in the year that after observing and evaluating market conditions, it was targeting $1 billion of reinsurance protection at the mid-year renewals, at an attachment point of $10.5 billion.
The FHCF has achieved just this, which follows on from a $1 billion programme with an attachment point of $12.5 billion in 2015, a $1 billion programme in 2016 with a lower attachment point, at $11.5 billion, and then another $1 billion programme in 2017, at the same attachment point as the previous year.
So, while the size of the programme has stayed the same, at $1 billion, the attachment point has declined by $2 billion from 2015.
Interestingly, the FHCF breaks down its panel of participating reinsurers, including the individual volume of participation, which, reveals that like last year, RenaissanceRe and Swiss Re dominated.
The participating reinsurers and their volume of participation, includes:
United States:
American Standard Ins Co of WI – 1.5%, or $15 million.
Everest Reinsurance Co – 0.5%, or $5 million.
Swiss Re America Corporation – 18.5%, or $185 million.
Europe:
Allianz Risk Transfer AG – 2%, or $20 million.
Tokio Millennium Re AG (obo Credit Suisse) – 1.5%, or $15 million.
Tokio Millennium Re AG (obo Elementum Advisor) – 0.6%, or $6 million.
Tokio Millennium Re AG (obo Fermat Capital) – 2%, or $20 million.
Tokio Millennium Re AG, Bermuda – 1.5%, or $15 million.
Bermuda:
Arch Re Ltd – 6%, or $60 million.
Ariel Re Bda/Argo Re – 1%, or $10 million.
BGS Services (Bermuda) Ltd / Lloyd’s Synd 2987 – 0.5%, or $5 million.
Chubb Tempest Re Ltd – 2%, or $20 million.
DaVinci Re Ltd – 8.25%, or $82.5 million.
Hiscox Ins Co (Bermuda) Ltd – 1.5%, or $15 million.
Lumen Re Ltd – 7.5%, or $75 million.
Markel Bermuda – 1%, or $10 million.
Renaissance Re Ltd – 26.25%, or $262.5 million.
Validus Re Ltd – 5%, or $50 million.
XL Bermuda Ltd – 1%, or $10 million.
United Kingdom:
Lloyd’s Syndicate 0033 (HIS) – 0.5%, or $5 million.
Lloyd’s Syndicate 0609 (AUW) – 0.15%, or $1.5 million.
Lloyd’s Syndicate 1274 (AUL) – 0.15%, or $1.5 million.
Lloyd’s Syndicate 1458 (RNR) – 3%, or $30 million.
Lloyd’s Syndicate 1910 (ARE) – 1%, or $10 million.
Lloyd’s Syndicate 2001 (AML) – 0.8%, or $8 million.
Lloyd’s Syndicate 2791 (MAP) – 0.75%, or $7.5 million.
Lloyd’s Syndicate 4444 (CNP) – 3%, or $30 million.
Liberty Specialty Services Ltd/ Lloyd’s Synd 4472 – 0.6%, or $6 million.
Asia:
Korean Re Co – 1.2%, or $12 million.
Taiping Re Co Ltd (HK) – 0.75%, or $7.5 million.
It’s important to note that RenRe’s participation in the programme is more than its direct $262.5 million, or 26.25%. RenRe also operates Lloyd’s Syndicate 1458, which participated 3%, or $30 million to the programme. And, also DaVinci Re Ltd, which participated 8.25%, or $82.5 million, and which is RenRe’s third-party reinsurance sidecar vehicle. As at June 30th, 2018, RenRe’s ownership of DaVinci Re totalled 22.1%.
So, combined, RenRe’s participation in the programme amounts to more than $300 million, with some of this potentially getting shared with its other third-party capital vehicles, as seen with DaVinci Re.
