Florida Citizens

The limit on the reinsurance Citizens will look to buy from the private markets will stretch to $14.35bn, up 2% on prior-year coverage.

In a presentation before Florida lawmakers, Cerio noted recent success in Citizens’ efforts to move policyholders to private insurers and reduce risk exposure.

The domestic carrier will write homeowners’ multi-peril business, according to filings which also detailed that $300,000 of the initial capital will be used to complete the statutory deposit requirement.

The number of policies being requested in the first half of 2023 is larger than the total number of policies requested for 2022.

Citizens has disclosed that Nephila Capital increased its exposure to the carrier’s reinsurance program by 68% to a total $756mn line.

Considering recent reforms, Citizens’ rates, on average, are still 58.6% below actuarially sound levels, but the inadequacy would have been 88.3% without them.

The two tranches of zero-coupon Class A notes priced at the lower end of narrow guidance ranges.

The reinsurer is seeking up to $300mn in 2023-1 Class A notes and up to $475mn in 2023-2 Class A notes.

The board also approved a PLA 2023 line of credit, which provides up to $1.25bn in liquidity.

The effective rate on the zero-coupon bond has lowered on the series 2023-1 Class A notes and the series 2023-2 Class A notes.

The bond will provide coverage for any named storm in the state of Florida.

The state carrier completed phase one of its program with the $500mn Lightning Re cat bond placement.