JLT Re has announced that it has launched a programme in partnership with Florida insurer, Weston Insurance Company to depopulate Citizens Property Insurance Company, reducing the latter’s exposure by $30 million.
31,000 policies will be transferred to Weston and the global reinsurance market. This deal marks the first ‘take-out’ to cover wind risk, although Weston will also take on some personal and commercial residential policies as part of the arrangement.
Under the terms of the deal, which has taken 18 months to develop, JLT Re provided reinsurance brokerage services in addition to strategic capital and analytics advice and practice support to investors and Weston’s management team.
This deal comes just days after Citizens's announcement that it would revise its purchasing policy, scaling back in an effort to “tighten its financial belt”, according to president and executive director, Barry Gilway.
“Clarifying and strengthening our internal procurement procedures will be the first of many concrete improvements made as Citizens lives up to its commitment to hold itself to the highest levels of financial and ethical integrity.” Read more about the new purchasing policy, which will be brought to the Citizen’s Board of Governors meeting at the end of March, here.
Citizens, Florida, JLT Re, US, reinsurance