Collateralized capital markets backed reinsurance capacity and insurance-linked securities (ILS) fund managers have taken roughly two-thirds of Florida Citizens traditional reinsurance tower at the recent renewals, with Nephila Capital remaining the largest of those markets.
Florida’s Citizens Property Insurance Corporation has placed increasing reliance on the capital markets to support its catastrophe reinsurance needs in recent years and this renewal sees third-party and alternative sources of reinsurance capital playing a particularly significant role.
One reason for this is the absence of Berkshire Hathaway in the 2024 reinsurance tower of Florida Citizens, which is surprising after that company took a massive $1 billion line a year ago.
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