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Florida Citizens Sponsors “Largest Cat Bond in the History of the World”

The Citizens Property Insurance Corp. board of governors has agreed to sponsor what is being called the “largest catastrophe bond in the history of the world” through Everglades Re Ltd...
April 30, 2014

The Citizens Property Insurance Corp. board of governors has agreed to sponsor what is being called the “largest catastrophe bond in the history of the world” through Everglades Re Ltd. to cover Florida's homeowners insurer of last resort for the 2014 hurricane season. The bond has an estimated size of $1.5 billion at 7.5 percent rate-on-line. It is a three-year annual aggregate catastrophe bond with an attachment point of $5.2 billion and allows multiple storms to be captured per year. The bond offering is nearly four times the initial size. Citizens is Florida’s largest writer of homeowners insurance, but the insurer has been shrinking over the past few years.

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