As a result, the reinsurers “might end up holding the bag” for much of Irma’s damage to residential properties, said Taoufik Gharib, a senior director at Standard & Poor’s Global Ratings. Much of Irma’s damage is expected to come from storm surge. Bulking Up / Global reinsurer capital Source: Aon Benfield AnalyticsIrma’s arrival is well-timed from one perspective: The global reinsurance industry is awash in capital. The replacements include such companies as Universal Insurance Holdings Inc., Heritage Insurance Holdings Inc. and HCI Group Inc. Many reinsurers that sell to Florida’s home insurers are in Bermuda, which has grown into a global reinsurance capital in part by specializing in the state’s hurricane risk.

Source: Wall Street Journal September 10, 2017 19:41 UTC