Validus Reinsurance, Ltd. (“Validus Bermuda”) and its subsidiary, Validus Reinsurance (Switzerland) Ltd. (“Validus Switzerland”), currently provide U.S. cedents with automatic credit for reinsurance through two separate U.S. multi-beneficiary reinsurance trusts (“MBRTs”) at the Bank of New York Mellon. A current copy of each MBRT deed of trust is available below. Each company’s MBRT is funded with 100% of its U.S. reinsurance liabilities plus a minimum of $20 million in excess surplus. Accordingly, cedents domiciled in any state in which the companies’ MBRT is approved have automatic 100% statement credit for all liabilities secured in the MBRT.
The lead state regulator of each company’s MBRT is the New Jersey Department of Banking and Insurance (the “NJDOBI”). Validus Bermuda’s MBRT is effective in all U.S. states except Florida and New York. Validus Switzerland’s MBRT is effective in all U.S. states except Florida, New York and New Mexico.
Among other financial condition documents filed periodically with the NJDOBI, the companies file quarterly financial statements for each MBRT with the NJDOBI and with regulators in all other states that have approved each MBRT. Please note that such quarterly financial statements relate only to the aggregate reinsurance collateral funding within each MBRT; in contrast, each company’s overall financial condition and results of operations are found in customary financial statements. Copies of the most recent quarterly financial statement for each MBRT are available upon request.
Validus Bermuda is currently approved as a certified reinsurer in both Florida and New Hampshire. This status allows the company to provide 100% credit for reinsurance to cedents domiciled in these two states. Validus Switzerland is not currently approved as a certified reinsurer in any states.
Validus Bermuda and Validus Switzerland is each approved as a reciprocal jurisdiction reinsurer in Missouri as lead state and in numerous other states (including Florida and New Hampshire) through an NAIC passporting process. This status provides that cedents domiciled in those states get 100% credit for the reinsurance they purchase from us, while eliminating the requirement for Validus Bermuda and Validus Switzerland to post regulatory collateral.