Florida’s Hurricane Catastrophe Fund (FHCF) has lowered the attachment point for its $1bn cover, of which Renaissance Re wrote more than a third.

The programme, which renewed on 1 June now incepts at $10.5bn, lower than the $11.5bn inception point of last year’s programme.

As of May, the FHCF reported that the industry had picked up a $8.03bn tab for residential losses in Florida following Hurricane Irma, which pummelled the state in September last year. That took the reported industry claims bill in the state to $34.46bn for 2017.

The FHCF picked up the tab for 28.5 percent of that, handing it a $9.81bn bill for the full year, well within its $11.5bn retention for the period. Hurricane Irma accounted for $2.404bn of that figure.

While last year’s losses would still sit within the FHCF’s new $10.5bn retention, they would have come closer to triggering the $1bn open market reinsurance layer.


Nevertheless, this year the fund paid $63mn for $1bn of coverage. Despite lowering the attachment point at the most recent renewal, the fund said it expected the $27.7mn net cost of the coverage to be less than last year.

There were around 31 separate carriers on the $1bn programme at the most recent renewal, although a number of those had a single common owner.

Renaissance Re had by far the largest portion of the risk with a 26.25 percent line. However it also had further exposure through its sidecar DaVinci Re - which took a 8.25 percent line - and its Lloyd’s Syndicate 1458, which wrote 3 percent of the risk.

Swiss Re’s US arm took a 18.5 percent line, while Bermuda-based ILS vehicle Lumen Re took a 7.5 percent stake.

Meanwhile, Tokio Millennium Re fronted for a number of alternative capital funds including Credit Suisse and Fermat Capital.

Carrier by domicileLine size (%)
American Standard Insurance Company of Wisconsin 1.5
Everest Re 0.5
Swiss Re 18.5
Allianz Risk Transfer 2
Tokio Millennium Re for Credit Suisse 1.5
Tokio Millennium Re for Elementum Advsiors 0.6
Tokio Millennium Re for Fermat Capital 2
Tokio Millennium Re 1.5
Arch Re 6
Argo’s Ariel Re 1
Brit 0.5
Chubb Tempest Re 2
DaVinci Re 8.25
Hiscox 1.5
Lumen Re 7.5
Markel 1
Renaissance Re 26.25
Validus Re 5
XL 1
Hiscox Lloyd’s Syndicate 33 0.5
Atrium Lloyd’s Syndicate 609 0.15
Antares Lloyd’s Syndicate 1274 0.15
Renaissance Re Lloyd’s Syndicate 1458 3
Argo Lloyd’s Syndicate 1910 1
MS Amlin Lloyd’s Syndicate 2001 0.8
Map Lloyd’s Syndicate 2791 0.75
Canopius Lloyd’s Syndicate 4444 3
LIiberty Lloyd’s Syndicate 4472 0.6
Korean Re 1.2
Taiping Re 0.75