FEMA EXPANDS ITS REINSURANCE PROGRAM BY TRANSFERRING $400 MILLION IN
FLOOD RISK TO CAPITAL MARKETS
[https://www.fema.gov/news-release/20200514/fema-expands-its-reinsurance-program-transferring-400-million-flood-risk]


Release Date: 
February 24, 2020 

FEMA continues to engage reinsurance markets to help strengthen the
financial framework of the National Flood Insurance Program and
promote private sector participation in flood-risk management.
 
On, Feb. 21, FEMA entered into the agency’s third, three-year
reinsurance agreement with Hannover Re (Ireland) Designated Activity
Company. The company acting on FEMA’s behalf, transferred $400
million of the program’s financial flood risk to qualified investors
of capital markets. The company did this by issuing a catastrophe
bond.
 
As part of the agreement, FEMA will pay $50.28 million in premiums for
the first year of reinsurance coverage. Additionally, the agreement
will cover 3.33 percent of losses for any single flood event with
losses between $6 and $9 billion, and 30 percent if that same flood
event has losses that rise to $9 to $10 billion.
 
"Reinsurance is a lynchpin to help strengthen the financial framework
of the flood insurance program,” said FEMA’s Deputy Associate
Administrator for Insurance and Mitigation David Maurstad, who is the
senior executive in charge of the National Flood Insurance Program.
“By engaging capital markets, FEMA is able to access alternative
capital and grow its reinsurance program in a way that benefits
policyholders and taxpayers, and expands the role of the private
markets in managing flood risk in the United States.”
 
This placement builds on the existing transfer of the program’s
flood risk to capital markets investors in August 2018 and April 2019,
which transferred $500 million and $300 million, respectively, in
flood risk for three years each. These capital market placements
complement the program’s existing traditional reinsurance coverage,
allowing FEMA to grow the reinsurance program that protect against
future flood losses. Combined with two capital market placements and
the January 2020 traditional reinsurance placements, FEMA has
transferred $2.53 billion of flood risk to the private sector ahead of
the 2020 hurricane season.
 
Congress authorized FEMA to secure reinsurance through the
Biggert-Waters Flood Insurance Reform Act of 2012
[https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATURmL93Rc9YdLj1PD7xrr0gXQpfKMO0uYOCzMTDEnTNaUnpG58cE60zgnAy11yLuUvEdB4vk9rpXo7L4u54WPMDsq5EMig0cfAKDuljVxNkumGqyIukueWl0VSMtbDaLwqA-3D-3DVn_e_lxoMxBJcNSSSccXgDna9Rsoo4Jo4wEQid5ZLbYebbCoE-2B9cQFXzswX2zYoZzdAYAPZ2UwQSEbPZ-2BT-2BBhDNGR0E150hiDseBWK-2BC028cnAIS4kAp0ZAwLlS6NGEZHA0TOi3QqvxLueUJLZRPbdd7bIPr2moeiwcx-2BidSRpYTXQoBgAbcnsi0j4UDfdQt3gsPbJ2mkKM3BEN96Bd-2F2JDtXcPJ60P3PZowUBy-2F3SFXaCPV5jLNZbuj4N0AWMkVtAhNK0IMagvN-2Fam0duDatefA8gVjuWbA1j08X9-2BRW2gvnDitIOxHwoxsMEUCjPpcpQA122rhHdUUOw8mRc-2FPh5jlal2kVxskt1Fn2FRTQWgp2kZ4-3D],
and the Homeowner Flood Insurance Affordability Act of 2014
[https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATURmL93Rc9YdLj1PD7xrr0gXFlY-2F6WCBjsxE4N2ehaxYLJ4upK48r1ErfKZamkLGy7gkhXo5E-2Fhw8fl-2BQL1Bw-2Fq4-3DDMGj_lxoMxBJcNSSSccXgDna9Rsoo4Jo4wEQid5ZLbYebbCoE-2B9cQFXzswX2zYoZzdAYAPZ2UwQSEbPZ-2BT-2BBhDNGR0E150hiDseBWK-2BC028cnAIS4kAp0ZAwLlS6NGEZHA0TOi3QqvxLueUJLZRPbdd7bIPr2moeiwcx-2BidSRpYTXQoBgAbcnsi0j4UDfdQt3gsPbJ2mkKM3BEN96Bd-2F2JDtXcHcQx5nZ9N-2BqK3-2FpGwJMgowLH8K0gw3FttaCTABOCaht1PceOReFI55v1XrwajtlD4IE6YyKi-2FjwHGvbS-2FGwtG8F3zQRxALJkxdKrSfw4x4G4vho5F8GYaU7kLAX8skyjR6dXvcOaiEmuR5n3pUqqDE-3D].
 
 
Visit FEMA.gov for more information about the reinsurance programs
[https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUV-2FyVzALDx4a9v-2FG-2BBCWaunvnu1A9bhML5C-2B1F-2BSvzRb722sspmD6fWq5M0K1Z7-2F1A-3D-3DVj6e_lxoMxBJcNSSSccXgDna9Rsoo4Jo4wEQid5ZLbYebbCoE-2B9cQFXzswX2zYoZzdAYAPZ2UwQSEbPZ-2BT-2BBhDNGR0E150hiDseBWK-2BC028cnAIS4kAp0ZAwLlS6NGEZHA0TOi3QqvxLueUJLZRPbdd7bIPr2moeiwcx-2BidSRpYTXQoBgAbcnsi0j4UDfdQt3gsPbJ2mkKM3BEN96Bd-2F2JDtXcH7eYfbSh3iKNcz9RkwU8q1sj4f6Y8Z851D5bdM4yx5zpfYkVvi09G-2FikLJXUF6UCeSuZ96o609YleXFwWlBhdGCDYGq7BtEWhUvM-2FupJPJNoBgIu6viRiuj6OgvXnw8ohaDHTk6y-2B4HAGw-2FCp30PTI-3D]
for the National Flood Insurance Program.

###

 

_FEMA's mission is to help people before, during and after disasters._
_Follow FEMA online
[https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUXDpG4mswepGJ-2F82Clpjv4hr-2FIjTue9RgAeRsuJFGD2VWpfC_lxoMxBJcNSSSccXgDna9Rsoo4Jo4wEQid5ZLbYebbCoE-2B9cQFXzswX2zYoZzdAYAPZ2UwQSEbPZ-2BT-2BBhDNGR0E150hiDseBWK-2BC028cnAIS4kAp0ZAwLlS6NGEZHA0TOi3QqvxLueUJLZRPbdd7bIPr2moeiwcx-2BidSRpYTXQoBgAbcnsi0j4UDfdQt3gsPbJ2mkKM3BEN96Bd-2F2JDtXcLmjZ46rjT-2FWcLMudwQ-2F-2Fn2Ce1c5Qmgav-2BJgfAlZLsJOc-2BxS-2BX0Ln6dDOs-2FN1ikLurYsqLZi1jEj3TP3d5OO-2BYWvUIHLcQJpJh8GX1-2FmaFbbtSNsJb2W9EDArhSTl8cP2Z8PTDe7urr7IXzmrKaEFIE-3D],
on Twitter @FEMA
[https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUR-2BMdrPv75T4cxF20ji4NP0-3D_UHG_lxoMxBJcNSSSccXgDna9Rsoo4Jo4wEQid5ZLbYebbCoE-2B9cQFXzswX2zYoZzdAYAPZ2UwQSEbPZ-2BT-2BBhDNGR0E150hiDseBWK-2BC028cnAIS4kAp0ZAwLlS6NGEZHA0TOi3QqvxLueUJLZRPbdd7bIPr2moeiwcx-2BidSRpYTXQoBgAbcnsi0j4UDfdQt3gsPbJ2mkKM3BEN96Bd-2F2JDtXcBx8OS-2FvM9RSNx1BaxRbx0GkR-2FE-2Ft3HUBENNa-2BnSzaE-2BndYV2GAu6b0FbnYuj9h0tRN1POgS-2Bf8G9ZZ5yrJBpFOMxVaLajQl2iPeHhFih4PTDahQxkZlVra0NP-2Bb34WLGPAsZKqVqZBUPefvDO2TIcU-3D]
or @FEMAEspanol
[https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUR-2BMdrPv75T4cxF20ji4NP0Nv2hqFV3WJQuWfO9Lk0cwdeIF_lxoMxBJcNSSSccXgDna9Rsoo4Jo4wEQid5ZLbYebbCoE-2B9cQFXzswX2zYoZzdAYAPZ2UwQSEbPZ-2BT-2BBhDNGR0E150hiDseBWK-2BC028cnAIS4kAp0ZAwLlS6NGEZHA0TOi3QqvxLueUJLZRPbdd7bIPr2moeiwcx-2BidSRpYTXQoBgAbcnsi0j4UDfdQt3gsPbJ2mkKM3BEN96Bd-2F2JDtXcM6mnAOsURhfeHlkr2oRqqzhGafUG2FO86pEEHk2mCbUdzGlBYeZSlofdIjAu12D0bsSGMvl-2BWsvQVjcwvV6vkTtCuZ8-2FyOwFHcbZvaYjsqy-2BzAYOcWqGWEDj-2FWEg8XbtpwtH-2B5jm4d7zNc64GfGpes-3D],
on FEMA's Facebook page
[https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUb8Hzhz9hTfMErRs-2Fni8h9iPu92JV3SaH5mnLVemEZQisvb0_lxoMxBJcNSSSccXgDna9Rsoo4Jo4wEQid5ZLbYebbCoE-2B9cQFXzswX2zYoZzdAYAPZ2UwQSEbPZ-2BT-2BBhDNGR0E150hiDseBWK-2BC028cnAIS4kAp0ZAwLlS6NGEZHA0TOi3QqvxLueUJLZRPbdd7bIPr2moeiwcx-2BidSRpYTXQoBgAbcnsi0j4UDfdQt3gsPbJ2mkKM3BEN96Bd-2F2JDtXcFWGHzrMAAfKTycnPEnp6MhFif5fypXtv3LBFfTUzjsWPzID-2B8gGHD-2FE-2BuuH063nPcVwmlKZsSDZ4xzGLz-2FKaPxK91N4GAC2BZLEiSK6eg-2BbDjshlNdx1Vpd-2BPGo-2Fb4U-2F1DCM4SWnye-2BFIXoj-2BbO-2FUA-3D]
or Espanol page
[https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUb8Hzhz9hTfMErRs-2Fni8h9jSoYeSJl1G9GOLM-2F2uuFx-2FofWe_lxoMxBJcNSSSccXgDna9Rsoo4Jo4wEQid5ZLbYebbCoE-2B9cQFXzswX2zYoZzdAYAPZ2UwQSEbPZ-2BT-2BBhDNGR0E150hiDseBWK-2BC028cnAIS4kAp0ZAwLlS6NGEZHA0TOi3QqvxLueUJLZRPbdd7bIPr2moeiwcx-2BidSRpYTXQoBgAbcnsi0j4UDfdQt3gsPbJ2mkKM3BEN96Bd-2F2JDtXcM-2BZQxHyImp8hUH9sHuUx9A-2FwB6IIwe2pu8ju9aRTulFAORwHF40giIz5zhEk7V41h8vlOeJN-2Bb6c0ckx15eC-2Fc-2B-2B2XAH0JezlvAHC5TY6xB4sAao30DBFPT1zKezSUFdneTR9GbDqYi3Rku8fbz1lg-3D]
and at FEMA's YouTube
[https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUWgRE384tHgp8wdcDkAUwQ8W1yDw3feWouckCmD2h0kC0OqE_lxoMxBJcNSSSccXgDna9Rsoo4Jo4wEQid5ZLbYebbCoE-2B9cQFXzswX2zYoZzdAYAPZ2UwQSEbPZ-2BT-2BBhDNGR0E150hiDseBWK-2BC028cnAIS4kAp0ZAwLlS6NGEZHA0TOi3QqvxLueUJLZRPbdd7bIPr2moeiwcx-2BidSRpYTXQoBgAbcnsi0j4UDfdQt3gsPbJ2mkKM3BEN96Bd-2F2JDtXcEbldJCdTHeIwiWUt4rnuGT1AL7EMQ-2FafgodKRzcNG766-2BAkiIxuptPgXeWyFX3XHMkMQvGHXY6R-2BcKNJnXbnNz0h4f0FoS0UQZvlwIFoit4Ay4qSPzANITFjknDx2KEvoUVrZvMeKXA1s16728jnwc-3D]
account. Also, follow Administrator Pete Gaynor’s activities
@FEMA_Pete
[https://u7061146.ct.sendgrid.net/ls/click?upn=4tNED-2FM8iDZJQyQ53jATUR-2BMdrPv75T4cxF20ji4NP2RxD8G9MK1S-2FaFUiKSElni6Jim_lxoMxBJcNSSSccXgDna9Rsoo4Jo4wEQid5ZLbYebbCoE-2B9cQFXzswX2zYoZzdAYAPZ2UwQSEbPZ-2BT-2BBhDNGR0E150hiDseBWK-2BC028cnAIS4kAp0ZAwLlS6NGEZHA0TOi3QqvxLueUJLZRPbdd7bIPr2moeiwcx-2BidSRpYTXQoBgAbcnsi0j4UDfdQt3gsPbJ2mkKM3BEN96Bd-2F2JDtXcF0M1UfCA3qM3k6OhYXxvopFPDtlrzNaosPVPO320CwWvSiV8n7EI82MZ8tIKEXkCNe-2FvPkNI9pZWRzpc0r9Z-2BDH9CHzsRRo5sNP16FQ-2FjJ-2FbCrytsv7r5Eab8hTjYvrTtx4ZRtSiv8XHjiEadhugj8-3D].
_