Florida Citizens Property Insurance Corporation has finalized its 2025 risk transfer programme, securing $4.49bn in total coverage, with insurance-linked securities (ILS), catastrophe bonds, and collateralised reinsurance comprising the majority of the placement.
The programme includes $2.89bn in new coverage and $1.6bn in existing multi-year risk transfer agreements from prior years.
Of the $2.89bn in new protection, $1.525bn was placed via the capital markets through Everglades Re II Ltd. (Series 2025-1), currently the largest catastrophe bond issuance on record.
The remaining $1.369bn in new reinsurance was sourced from traditional and collateralised markets.
Breakdown of the $1.369 bn in new reinsurance:
- Domestic reinsurers: $422.2mn (30.84%)
- Bermuda-based reinsurers: $549.7mn (40.15%)
- International reinsurers: $50.4mn (3.68%)
- Collateralised markets: $309mn (22.57%)
- Gallagher UK placements: $37.7mn (2.76%)
In total, traditional reinsurers provided $565.8mn, or 41% of the new reinsurance. The remaining 59%, or $803.2mn, came from ILS and collateralised markets.
Across the full $4.49bn risk transfer tower—combining new and existing placements—catastrophe bonds and capital markets-backed protection make up 70%, or $3.928bn.
Traditional reinsurance represents just 13%, or $565.8mn. The remaining share is made up of existing multi-year risk transfer arrangements.
Key participants include:
- Domestic reinsurers: Swiss Re ($94.1mn), Everest Re, Munich Re America, Odyssey Re, Arch Re, Hannover Re America, Transatlantic Re, Cincinnati Insurance, American Family Connect
- Bermuda reinsurers: Markel Bermuda ($350mn across layers), PartnerRe, Hannover Rück SE, Lloyd’s Syndicates 1910 (Ariel Re), 2357 (Nautical Management)
- International reinsurers: Lumen Re ($31.5mn), Korean Re, Nectaris Re
- Gallagher UK placements: Lloyd’s Syndicates 2791 (MAP, $17.2mn), 1414 (Ascot), and others via Hannover Rück SE and Ascot Bermuda
As in prior years, Citizens’ strategy prioritises capital markets solutions for catastrophe risk, with traditional reinsurance playing a smaller, targeted role.
The share of capital markets participation may be even higher, as some reinsurers may cede part of their assumed risk to third-party capital platforms.
