Reinsurance and Rating

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Reinsurance and Rating

At Anchor, we specialize in insuring homes near the coast. Because coastal areas are highly exposed to storms, we must be prepared to respond to the potentially devastating impact of those storms.

How do we maintain our financial strength despite the threats we face as a coastal insurer?

Reinsurance plays a key role. Much of the loss we incur from storms is covered by reinsurance we purchase each year. It is important we carefully develop our reinsurance program to meet our specific needs today and into the future. Anchor purchases a very conservative reinsurance program so that, when faced with an event, you can count on us to pay your claim.

Highlights of our current reinsurance program include:
  • More than $263 million of reinsurance limit to cover losses: We use historical data and storm modeling software to help us determine what it would cost to replace or repair the homes Anchor insures (and those we plan to insure) when a major hurricane or multiple hurricanes strike.
  • Reinsurance coverage for multiple storms: Anchor purchases reinsurance on a cascading basis to protect against severe losses but also against the possibility of multiple losses.
  • Low retention: Our “retention” is like a co-pay and is the amount Anchor must first pay before recovering from our reinsurance program. Anchor P&C’s retention is $4 million in a first event, and $2.75 million for subsequent events. Anchor Specialty’s retention is $1.375 million per event.
  • Reinsurance coverage from 32 highly-rated reinsurers located throughout the world: We spread our risk among many reinsurers, limiting their individual losses and ensuring quick, reliable payment to our customers.


2016-2017 Reinsurance Participants:
Region Reinsurer A.M. Best Rating
U.S. Everest Reinsurance Company A+
U.S. Odyssey Reinsurance Company A
U.S. Transatlantic Reinsurance Company A
Bermuda AlphaCAT Reinsurance Ltd. NR
Bermuda Amlin Bermuda A
Bermuda Arch Reinsurance Ltd A+
Bermuda Aspen Bermuda Limited A
Bermuda Axis Specialty Limited A+
Bermuda Chubb Tempest Reinsurance Ltd. A++
Bermuda DaVinci Reinsurance Ltd A
Bermuda Endurance Specialty Insurance Ltd A
Bermuda Horseshoe Re Limited RA001 NR
Bermuda Markel Bermuda Limited A
Bermuda Partner Reinsurance Company Ltd. A
Bermuda Renaissance Reinsurance Ltd. A+
Bermuda Validus Reinsurance, Ltd. A
London Acappella Syndicate #2014 A
London Amlin Syndicate #2001 A+
London Ark Syndicate #4020 A
London Ascot Syndicate #1414 A
London Beazley Syndicate #623 A
London Beazley Syndicate #2623 A
London Chaucer Syndicate #1084 A
London Dale Syndicate #1729 A
London Faraday Syndicate #435 A
London Hardy Syndicate #382 A
London Managing Agency Partners Syndicate #2791 A
London Marketform Syndicate #2468 A
London Novae Syndicate #2007 A
London Ren Re Syndicate #1458 A
London Talbot Syndicate #1183 A
Europe Hannover Ruck SE A+

 

*Current reinsurance program is effective June 1, 2016 through May 31, 2017. Reinsurers' ratings by A.M. Best are as of June 2016. Collateralized means these reinsurers guarantee the full reinsurance limits by holding cash in a trust account.