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 $235 million of reinsurance limit to cover losses in a first event: 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 $3.2 million in a first and second event, and $4.3 million for subsequent events. Anchor Specialty's retention is $1 million in a first and second event, and $4 million for subsequent events.
  • Reinsurance coverage from 38 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.


2018-2019 Reinsurance Participants:
Region Reinsurer A.M. Best Rating
U.S. Endurance Assurance Corporation A+
U.S. Everest Reinsurance Company A+
U.S. Odyssey Reinsurance Company A
Bermuda MS Amlin AG (Bermuda Branch) A
Bermuda Arch Reinsurance Ltd A+
Bermuda Axis Specialty Limited A+
Bermuda Chubb Tempest Reinsurance Ltd. A++
Bermuda DaVinci Reinsurance Ltd A
Bermuda Endurance Specialty Insurance Ltd. A+
Bermuda Hannover Ruck SE (ILS Capital Management Ltd)) A+
Bermuda Horseshoe Re Limited RA0001 / RA0001 (A) NR
Bermuda Lancashire Insurance Company Limited A
Bermuda Markel Bermuda Limited A
Bermuda Oxbridge Reinsurance Limited NR
Bermuda Partner Reinsurance Company Ltd. A
Bermuda Poseidon Re (Nephila Capital) NR
Bermuda Prospero Re Ltd. (ILS Capital Management Ltd) NR
Bermuda Renaissance Reinsurance Ltd. A+
Bermuda Rubik (Nephila Capital) NR
Bermuda Tokio Millennium (Credit Suisse) A++
Bermuda Validus Reinsurance, Ltd. A
Bermuda XL Bermuda Ltd A
London Apollo Syndicate #1969 A
London Ark Syndicate #4020 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 Humboldt Re Limited A-
London Managing Agency Partners Syndicate #2791 A
London MS Amlin Syndicate #2001 A
London Nephila Syndicate #2357 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, 2018 through May 31, 2019. Reinsurers' ratings by A.M. Best are as of June 2018. Collateralized means these reinsurers guarantee the full reinsurance limits by holding cash in a trust account.