XL Re, the global reinsurance operations of XL Capital, has received approval from the Florida Office of Insurance Regulation to qualify as an 'Eligible Reinsurer' in Florida pursuant to requirements set forth by the Florida Insurance Code.
In its consent order, the office cited various reasons for granting approval to XL Re including its secure financial strength ratings and its domiciliary regulatory jurisdiction.
The Bermuda reinsurer XL Re received such approval since Florida passed a rule based on 2007 legislation that permits the office to establish lower collateral requirements for foreign reinsurers that are highly rated and financially sound.
James Veghte, chief executive of XL’s reinsurance operations, said: We are encouraged that Florida is helping lead the way in elimination of unnecessary collateral requirements on foreign reinsurers. We remain fully committed to meeting the reinsurance needs of our clients in Florida and around the globe.