Alterra Bermuda, part of Alterra Capital Holdings, has received approval from the State of Florida to qualify as an Eligible Reinsurer.
The approval status allows Alterra Bermuda to lower collateral requirements on non-domestic reinsurers that are highly rated and financially secure.
Through this status, Alterra Bermuda will now be able to post 20% of loss reserves on property catastrophe reinsurance in Florida rather than the 100% required by most non-US reinsurers.
Currently, Florida is one among a small group of states within the US to adopt this rule, effectively lowers the barriers of entry into the market for non-US reinsurers.
The Florida Office of Insurance Regulation reviews reinsurers for approval after companies undergo a selective application process requiring them to have capital and surplus of at least $100m, proof of financial strength by at least two nationally recognized rating organizations, and evidence of continued financial soundness and stability.
Alterra Capital Holdings is a provider of diversified specialty insurance and reinsurance products to corporations, public entities, and property and casualty insurers.