Certified reinsurers are unauthorized assuming insurers that have been approved by the Commissioner to provide reduced amounts of collateral for their reinsurance liabilities pursuant to N.C. Gen. Stat. §58-7-21(b)(4a).
In general, to be eligible as a certified reinsurer in North Carolina, an assuming insurer must meet the following requirements:
- Domiciled and licensed as an insurer or reinsurer in a “qualified jurisdiction”
- Maintain minimum capital and surplus of no less than $250,000,000
- Maintain financial strength ratings from two or more rating agencies deemed acceptable to the Commissioner
- Agree to submit to the jurisdiction of North Carolina
- Submit financial information for regulatory review
- Satisfy other requirements established by the Commissioner
In addition to the preceding, the Commissioner will also consider the business practices of the reinsurer, its reputation for prompt payment, and any regulatory actions against the assuming insurer.
The level of collateral required from a certified reinsurer for full statutory credit is based on two interactive financial strength ratings from nationally recognized rating agencies (e.g. A.M. Best, Fitch, Moody’s and Standard and Poor’s). The level of reduced collateral may be as low as 0% for the highest rated certified reinsurers. The ratings scale is shown below.
|Financial Strength Rating Granted by Department||Minimum Amount Withheld for Full Credit|
Initial and Annual Filing Requirements
To apply to become a certified reinsurer in North Carolina an applicant must submit:
To retain certification an updated Uniform Application Checklist for Certified Reinsurers and Form CR-1, must be submitted by December 1 of each year.
The following companies have applied to become a certified reinsurer in North Carolina:
|Federal / Alien ID||Applicant||Domiciliary Jurisdiction||Date Posted||Response Deadline|
Interested or affected parties have 30 days from the date notice is posted to submit written responses to the certified reinsurer applications listed above. The Commissioner will not take final action on an application until at least 30 days after notice is posted.
Responses should be directed via e-mail to Hasije.Harris@ncdoi.gov and reference Certified Reinsurer Application in the subject line.
Listing of Certified Reinsurers in North Carolina
A listing of all certified reinsurers in North Carolina and their assigned ratings is as follows:
|Federal / Alien ID||Certified Reinsurer Name||Domiciliary Jurisdiction||Assigned Rating||Effective Date||Expiration Date|
|AA-3191315||XL Bermuda Ltd||Bermuda||Secure 2||5/8/2019||12/31/2021|
|AA-1340125||Hannover Ruck SE||Germany||Secure 2||5/17/2019||12/31/2021|
|AA-3190339||Renaissance Reinsurance Ltd.||Bermuda||Secure 3||5/29/2019||12/31/2021|
|AA-3194122||DaVinci Reinsurance Ltd.||Bermuda||Secure 4||5/31/2019||12/31/2021|
|AA-3194126||Arch Reinsurance Ltd.||Bermuda||Secure 3||1/29/2020||12/31/2021|
|AA-3191250||Watford Re Ltd||Bermuda||Secure 4||3/30/2020||12/31/2021|
|AA-3194130||Endurance Specialty Insurance Ltd.||Bermuda||Secure 3||12/21/2020||12/31/2021|
|AA-1320152||Chubb European Group SE||France||Secure 2||1/7/2021||12/31/2021|
Listing of Qualified Jurisdictions
As part of the reinsurer certification process, the Commissioner is required to maintain a list of qualified jurisdictions under which an assuming insurer licensed and domiciled in such jurisdiction is eligible to be considered for certification by the Commissioner as a certified reinsurer.
|Bermuda||The Bermuda Monetary Authority (BMA)|
|France||Autorité Contrôle Prudentiel et de Résolution (ACPR)|
|Germany||German Federal Financial Supervisory Authority (BaFin)|
|Ireland||Central Bank of Ireland (Central Bank)|
|Japan||Financial Services Agency of Japan (FSA)|
|Switzerland||The Swiss Financial Market Supervisory Authority (FINMA)|
|United Kingdom||The Prudential Regulation Authority of the Bank of England (PRA)|
Questions concerning certified reinsurers or the application or renewal process can be directed to:
Special Projects Manager