This episode of A.M.BestTV examines how Florida's Citizens
Property Insurance Corp. (Citizens) launched a $1.5 billion catastrophe
reinsurance bond, the largest in the industry. Meg Green interviews
Jennifer Montero, chief financial officer of Citizens and examines how
the unusual coverage works. Additionally, Best's Review's Angelo
Lewis interviews A.M. Best's Managing Senior Financial Analyst of
Insurance Linked-Securities, Asha Attoh-Okine, on catastrophe bond
activity for the first half of 2014 and how the deluge of private
capital is transforming the reinsurance industry.
Citizens is behind the world's largest catastrophe reinsurance bond and
is Florida's insurer of last resort. The company now taps the capital
market for one-half of its reinsurance coverage. "The 2014 cat bond
represents 45% of our total risk transfer this year. If Citizens adds in
the 2013 bond, which does not expire until 2015, that makes about 50%
between the capital market and traditional reinsurance," said Montero.
Click here to view this episode. http://www.ambest.com/v.asp?v=catbonds814
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