Reinsurance Program
FedNat Insurance Company
FedNat has a reinsurance program that affords its policyholders approximately $2.22 billion of aggregate coverage, with a maximum single event limit of approximately $1.5 billion. This reinsurance program, at a cost of approximately $179.5 million, is designed to reimburse FedNat for losses incurred by our homeowner policyholders’ resulting from one or more catastrophic events, including hurricanes. Reinsurance is insurance for insurance companies. We utilize reinsurance to protect our existing capital and reduce our earnings volatility while significantly decreasing our financial exposure to hurricanes.
| Property Catastrophe Excess Reinsurance Program | |||
| Effective July 1, 2016 | |||
| Reinsurer Name | AM Best Rating | S&P Rating | Surplus Amount (USDmn) |
| United States Markets | |||
| American Agricultural Insurance Company | A- | NR | 554.5 |
| American Family Mutual Insurance Company | A | NR | 6,608.4 |
| Everest Reinsurance Company | A+ g | A+ | 3,308.0 |
| Odyssey Reinsurance Company | A | A- | 3,168.8 |
| Partner Reinsurance Company of the US | A g | A+ | 1,420.3 |
| QBE Reinsurance Corporation | A p | A+ | 829.3 |
| RLI Insurance Company – a Division of RLI Insurance Company | A+ | A+ | 897.7 |
| Swiss Reinsurance America Corporation | A + g | AA- | 3,575.8 |
| The Cincinnati Insurance Company | A+ | A+ | 4,533.7 |
| Transatlantic Reinsurance Company | A | A+ | 4,935.4 |
| Bermuda Markets | |||
| Allied World Assurance Company, Limited | A | A | 4219.0 |
| Amlin AG, Switzerland, Bermuda Branch | A u | A | 1567.7 |
| Arch Reinsurance Limited | A+ | A+ | 7,246.6 |
| Argo Re Ltd | A | NR | 1,261.1 |
| Ariel Reinsurance Bermuda Ltd for and on Behalf of Ariel Syndicate 1910 (ARE) | A | A+ | 255.9 |
| Ascot Underwriting (Bermuda) Limited/AIG per AIRCO agreement | A | A+ | 988.6 |
| Aspen Bermuda Limited | A g | A | 2,205.5 |
| AXIS Specialty Limited | A+ | A+ | 4,298.2 |
| Brit Bermuda (BGS Services (Bermuda) Limited/Lloyds Syndicate 2987) | A | A+ | 1,580.3 |
| Chubb Tempest Reinsurance Ltd. | A++ | AA | 6,974.9 |
| DaVinci Reinsurance Ltd. | A | AA- | 1,412.3 |
| Endurance Specialty Insurance Ltd. | A | A | 5,262.0 |
| Fidelis Insurance Bermuda Ltd. | A- | NR | 1,181.8 |
| Hamilton Re, Ltd. | A- | NR | 1,484.70 |
| Hiscox Insurance Company (Bermuda) Limited | A | A | 848.4 |
| Partner Reinsurance Company Limited | A | A+ | 3,655.0 |
| Q Re | A | A | 1,597.8 |
| Renaissance Reinsurance, Ltd. | A+ | AA- | 1,800.00 |
| Tokio Millennium Re AG, Bermuda Branch | A++ | A+ | 1,199.3 |
| XL Bermuda Ltd | A g | A+ | 3,632.8 |
| European Markets | |||
| Allianz Risk Transfer AG, Bermuda Branch (obo Nephila) | A+ g | AA- | 646.2 |
| Lansforsakringar Sak Forsakringsaktiebolag (publ) | NR | A | 229.0 |
| Liberty Syndicate Management Limited, Paris for and on behalf of Lloyd’s Syndicate 4472 (LIB) | A | A+ | 1,702.3 |
| Lloyd’s of London | A | A+ | |
| Acapella Syndicate Syndicate (2014) (ACA) | A | A+ | 198.8 |
| Amlin Syndicate (2001) (AML) | A | A+ | 2,058.0 |
| Antares Syndicate (1274) (AUL) | A | A+ | 350.8 |
| Ariel Re Syndicate (1910) (ARE) | A | A+ | 255.9 |
| Ark Syndicate (4020) (ARK) | A | A+ | 612.0 |
| Ascot Syndicate (1414) (ASC) | A | A+ | 882.0 |
| Barbican Syndicate (1955) (BAR) | A | A+ | 294.0 |
| Beazley Syndicate (623) (AFB) | A | A+ | 379.3 |
| Beazley Syndicate (2623) (AFB) | A | A+ | 1,678.7 |
| Canopius Syndicate (4444) (CNP) | A | A+ | 1,154.4 |
| Canopius Syndicate (958) (CNP) | A | A+ | 288.6 |
| Cathedral Syndicate (2010) (MMX) | A | A+ | 468.2 |
| Catlin Syndicate (2003) (SJC) | A | A+ | 2,363.0 |
| Chaucer Syndicate (1084) (CSL) | A | A+ | 1,185.6 |
| China Re Syndicate (2088) (CNR) | A | A+ | 131.0 |
| Dale Syndicate (1729) (DUW) | A | A+ | 117.0 |
| Faraday Syndicate (435) (FDY) | A | A+ | 612.0 |
| Hiscox Syndicate (33) (HIS) | A | A+ | 1,661.0 |
| MAP Syndicate (2791) (MAP) | A | A+ | 624.0 |
| Markel Syndicate (3000) (MKL) | A | A+ | 780.0 |
| Novae Syndicate (2007) (NVA) | A | A+ | 1,071.0 |
| Renaissance Re Syndicate (1458) (RNR) | A | A+ | 448.8 |
| Vibe Syndicate (5678) (VSB) | A | A+ | 49.0 |
| New India Assurance Company Limited | A- | NR | n/a |
| Asia/Pacific Rim Markets | |||
| China Reinsurance (Group) Corporation | A | A+ | 6.804.8 |
| Fubon Insurance Co., Ltd. | A | A- | 1,071.0 |
| General Insurance Corporation of India, trading as GIC Re | A- | NR | 6,706.3 |
| Peak Reinsurance Company Ltd | A- | NR | 716.9 |
| Pioneer Underwriting Ltd (Pioneer CAT USDF) / Peak Reinsurance Company Ltd | A- | NR | 716.9 |
| Pioneer Underwriting Ltd (Pioneer CAT USDF) / Taiping Reinsurance Co., Ltd. | A | A | 799.0 |
| Hedge Funds/Collateralized Markets | |||
| Aeolus Reinsurance Ltd | NR | NR | * |
| Coriolis Capital Limited | NR | NR | * |
| Elementum Advisors | NR | NR | * |
| Eskatos Capital Management (Utilizing Hannover Rueck SE) | NR | NR | * |
| Hudson Structured | NR | NR | * |
| LGT Capital | NR | NR | * |
| Pillar Capital Management Limited (Utilizing Hannover Ruckversicherung-Aktiengesellschaft AG) | A+ | AA- | 6,182.8 |
| Securis Capital (London) | NR | NR | * |
| * Reinsurance company has already pledged the full resources that FedNat may need in the event of a claim(1) United States reinsurers surplus as of March 31, 2015. All others are as of December 31, 2014.* Reinsurance company has already pledged the full resources that FedNat may need in the event of a claim | |||
Monarch National Insurance Company
Monarch National has a reinsurance program that affords its policyholders approximately $28.55 million of aggregate coverage, with a maximum single event limit of approximately $18.40 million. This reinsurance program, at a cost of approximately $1.415 million, is designed to reimburse Monarch National for losses incurred by our homeowner policyholders’ resulting from one or more catastrophic events, including hurricanes.
| Property Catastrophe Excess Reinsurance Program | |||
| Effective June 1, 2016 | |||
| Reinsurer Name | AM Best Rating | S&P Rating | Surplus Amount (USDmn) |
| United States Markets | |||
| Odyssey Reinsurance Company | A | A- | 3,168.8 |
| Transatlantic Reinsurance Company | A | A+ | 4,935.4 |
| Bermuda Markets | |||
| DaVinci Reinsurance Ltd. | A | AA- | 1,412.3 |
| Renaissance Reinsurance, Ltd. | A+ | AA- | 1,800.0 |
| Hedge Funds/Collateralized Markets | |||
| Pillar Capital Management Limited (Utilizing Hannover Ruckversicherung-Aktiengesellschaft AG) | A+ | AA- | 6.182.8 |
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