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 domicile||Line size (%)|
|American Standard Insurance Company of Wisconsin||1.5|
|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|
|Argo’s Ariel Re||1|
|Chubb Tempest Re||2|
|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|