Samir Khare's questions to Fundamental Global (FGF) leadership • Q1 2017
Question
Samir Khare of Capital Returns Management asked about the upcoming reinsurance renewal, potential changes to the program, participation in the TWIA takeout, and sought more detail on the rating agency changes in Florida that could create market opportunities.
Answer
President and CEO Douglas Raucy stated that no major changes are expected for the June 1st reinsurance renewal, with the structure remaining nearly identical and the aggregate cover likely staying at $25 million. He confirmed the company will not participate in the 2017 TWIA depopulation unless captive carriers join. Regarding Florida, Raucy elaborated that rating agency Demotech is more strictly enforcing minimum capital requirements, causing disruption and consolidation among smaller carriers and contributing to a hardening market that presents an opportunity for PIH.