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American Integrity Insurance Becomes the Only Florida Domestic Carrier to Issue a Catastrophe Bond in Preparation for the 2020 Hurricane SeasonEvery June 1st, Florida home insurance companies ask their policyholders if they're prepared for hurricane season. This year, American Integrity Insurance Company (AIIC) became the only Florida domiciled insurance company to issue a catastrophe bond, Integrity Re II Pte. Ltd., as part of its overall financial portfolio. "Despite current market volatility, investors recognized AIIC's status as the most consistent cat bond sponsor among Florida insurers since 2017 with the successful closing of its Integrity Re II Pte. Ltd. Series 2020-1 Notes, completed in March 2020, which was the third 144A cat bond to utilize a Singapore-domiciled special purpose reinsurance vehicle," said Cory Anger, Managing Director, GC Securities. "GC Securities has been honored to support AIIC since 2017 in expanding its capital resiliency from the effects of natural perils that can affect its policies through the efficient and flexible usage of catastrophe bonds in concert with its traditional reinsurance program." The current issuance is a great indicator of the Company's readiness for storm season and further protects its financial strength in the wake of catastrophic events, such as a hurricane. The fact that American Integrity is the only domestic carrier to issue a bond in 2020 speaks to the Company's solid financial footing despite Florida's dynamic and challenging property insurance market. "The successful completion of American Integrity's catastrophe bond transaction demonstrates our ongoing commitment to claims-paying capacity, surplus protection, and development a comprehensive risk management strategy to protect our company and policyholders against unforeseen events," says Ryan Hodges, American Integrity's Vice President of Risk Management. American Integrity's $150 million catastrophe bond, with Hannover Rück SE acting as the ceding reinsurer, provides the Tampa-based insurance company and its policyholders with a multi-year source of financial protection against named storms that cause major damage in the state of Florida. A catastrophe bond acts as another layer of reinsurance. Reinsurance, in essnce, is insurance for insurance companies. In 2004, Florida was hit by four hurricanes in one season. It is imperative that insurance companies have enough coverage to handle multiple events to be able to pay claims, and continue to run and grow their business. American Integrity's reinsurance program has consistently earned it an "A" Exceptional Financial Stability Rating® from Demotech, Inc. As a liquid financial instrument, the new catastrophe bond adds to American Integrity's already robust reinsurance program and will quickly and easily convert into cash for rapid claims-paying after a catastrophic storm. American Integrity's catastrophe bond becomes effective on June 1, the beginning of the 2020 hurricane season. "Entering the catastrophe bond market offers added stability for our Company, our policyholders and their homes," says American Integrity President and CEO, Bob Ritchie. "A hurricane is the ultimate test of our ability to fulfill our financial commitment to quickly pay claims to impacted customers, while continuing to conduct and grow our business. Our catastrophe bond provides us with an extra source of financial backing to do just that." For more information, please visit the Company's website at www.aiiflorida.com, or call 866-968-8390. About American Integrity Insurance Group (American Integrity) American Integrity Insurance, the fifth largest Florida domiciled residential property insurer, has in excess of 300,000 customers and is represented by more than 1,000 independent agents. The Tampa-based company offers sound and comprehensive property insurance solutions, including traditional home insurance and coverage for vacant homes, condominiums, manufactured homes, dwelling fire, umbrella, golf cart, X-Wind policies, cyber coverage, and small boat coverage. For more information, please visit the company's website at www.aiiflorida.com, call 866-968-8390, or connect with the company on Facebook, Twitter, LinkedIn, or Instagram. View source version on businesswire.com: https://www.businesswire.com/news/home/20200326005522/en/ |
