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A.M.BestTV: Inside the World's Largest Catastrophe Bond

August 4, 2014



ENP Newswire - 04 August 2014

Release date- 01082014 - This episode of A.M.BestTV examines how Florida'sCitizens 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.

Recent episodes of A.M.BestTV include:

Payouts From State Guaranty Funds Reach $28 Billion: Headline insolvencies such as Fremont Indemnity Company, Reliance Insurance Company andLumbermens Mutual Casualty Company are the tip of a 600-deep roster of failed U.S. insurers over the last 40 years, insolvency experts report. An insolvency can trigger payouts to policyholders from U.S. state guaranty funds, though payout caps vary among states: http://www.ambest.com/v.asp?v=guarantyfunds714.

Foes of Digital Highway Billboards Call for Insurers' Help: The use of digital billboards has become more prevalent, and as a result, the Scenic America Association seeks to curtail their use, saying that they are a distraction. Insurers say all distractions are a concern. Studies on the signs' impact reach conflicting conclusions: http://www.ambest.com/v.asp?v=scenic714.

Insurance Legislation Picks Up: Business Travel Concerns: Kathy Donovan, senior compliance counsel of Wolters Kluwer Financial Services reports that the pace of U.S. state insurance-related legislation is running ahead of 2013. In addition, James Scott, accident product head at American International Group, Inc.'s Benefit Solutions discusses developments in business travel insurance: http://www.ambest.com/v.asp?v=news72514.

What's Ahead for U.S. Terrorism Risk Coverage: Bernie Heinze of American Association of Managing General Agents (AAMGA), Brady Kelley of National Association of Professional Surplus Lines Offices, Ltd. (NAPSLO) and Frank Nutter of the Reinsurance Association of American, along with other insurance industry executives, outline the differences in the House and Senate terrorism coverage bills and assess chances for timely resolution: http://www.ambest.com/v.asp?v=tria714.

A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html.

View A.M.BestTV episodes at www.ambest.tv.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.

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Source: ENP Newswire


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