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 rely on us to pay your claim.

Highlights of our current reinsurance program include:
  • More than $274 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's comprehensive reinsurance program is designed to cover major events and multiple storms using a combination of cascading, reinstated and single shot limit.
  • 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 $2.4 million in a first event, and $3 million in a second and third event. Anchor Specialty's retention is $1.25 million in a first and second event, and $3 million in a third event.
  • Reinsurance coverage from 35 highly-rated reinsurers located around the world: Anchor's risk is distributed among select reinsurers, limiting their individual losses and ensuring quick, reliable payment to our customers.

2019-2020 Reinsurance Participants:
Region Reinsurer A.M. Best Rating
U.S. Everest Reinsurance Company A+
U.S. Odyssey Reinsurance Company A
U.S. Swiss Reinsurance America Corporation A+
Bermuda Allied World Assurance Company, Ltd A
Bermuda Arch Reinsurance Ltd A+
Bermuda Arch Reinsurance Ltd (Quantedge USA) A+
Bermuda Artex SAC Limited (Gemini Re) NR
Bermuda AXIS Specialty Limited A+
Bermuda Chubb Tempest Reinsurance Ltd. A++
Bermuda DaVinci Reinsurance Ltd A
Bermuda Endurance Specialty Insurance Ltd. A+
Bermuda Horsheshoe Re Limited (Hudson Structured) NR
Bermuda Markel Bermuda Limited A
Bermuda MS Amling AG (Bermuda Branch) A
Bermuda Oxbridge Reinsurance Limited NR
Bermuda Partner Reinsurance Company Ltd. A
Bermuda Prospero Re Ltd. (ILS Capital Management Ltd) NR
Bermuda Renaissance Reinsurance Ltd. A+
Bermuda Third Point Reinsurance Company Ltd. A-
Bermuda Validus Reinsurance, Ltd. A
Bermuda XL Bermuda Ltd A+
London Lloyd's Syndicate 1084 Chaucer A
London Lloyd's Syndicate 1183 (Talbot Underwriting Ltd) A
London Lloyd's Syndicate 1458 (RenaissanceRe Syndicate Management Limited) A
London Lloyd's Syndicate 1729 (Asta Managing Agency Limited) obo Dale Re A
London Lloyd's Syndicate 1861 (AmTrust Syndicates Limited) A
London Lloyd's Syndicate 1969 (Apollo Syndicate Management Limited) A
London Lloyd's Syndicate 2001 (MS Amlin) A
London Lloyd's Syndicate 2007 Axis A
London Lloyd's Syndicate 2623 (Beazley Furlonge Limited) A
London Lloyd's Syndicate 2791 (Managing Agency Partners Limited) A
London Lloyd's Syndicate 4242 (Asta Managing Agency Limited) obo Chord Re A
London Lloyd's Syndicate 623 (Beazley Furlonge Limited) A
Europe Humboldt Re Limited A-
Europe Kelvin Re Limited (CSAM) A-


*Current reinsurance program is effective June 1, 2019 through May 31, 2020. Reinsurers' ratings by A.M. Best are as of June 2019. Collateralized means these reinsurers guarantee the full reinsurance limits by holding cash in a trust account.