US flood programme NFIP bought $620m reinsurance at 1.1 for $121m
US catastrophe management agency FEMA bought $619.5 million in reinsurance limit for the national flood insurance program NFIP at the 1.1 renewals for $121.1 million in premium paid.
Marsh McLennan's reinsurance brokerage unit Guy Carpenter handled the deal with a panel of 18 reinsurers, flat against the prior year count, albeit well below the panel size from pre-2023 when limit was also upwards of two times larger.
Together with alternative risk transfer, FEMA arranged for $1.9 billion in limit for NFIP for the 2024 hurricane season.
That sum now tips 2:1 towards cat bonds over traditional reinsurance after FEMA added $575 million via a recent tranche of FloodSmart Re cat bonds, bringing the outstanding cat bond total to $1.3 billion.
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