Reinsurance

PURE preserves its capital by purchasing reinsurance from highly rated reinsurance companies. The coverage purchased from reinsurers includes protection against losses to individual homes and collections, as well as lawsuits; and protection against events that could affect many members at one time.

PURE uses the latest computer models to estimate probable hurricane losses and purchase the limits of reinsurance to protect against such events.

Key elements of PURE's reinsurance protection:

• Up to 68.5% of the cost of each and every individual High Value Homeowners loss is recoverable from reinsurers. This "per risk" protection has some limitations for coverage available for a single hurricane, but provides substantial protection for years with multiple storms, such as 2004. Additional reinsurance is in place to help PURE insure extremely high valued properties.
• In the event of a hurricane, PURE receives coverage from the "per risk" treaty and then relies on purchased "catastrophe" coverage that responds with the "per risk" treaty. These coverages are estimated to be greater than what is required to protect PURE against a modeled "100 year event".
• 80% of the costs of all Personal Excess Liability claims are recoverable from reinsurers.
• All the private companies providing reinsurance to PURE are rated financially secure by AM Best.

The reinsurers that are providing coverage to PURE include some of the most respected names in the industry:

• General Reinsurance Company
• Arch Reinsurance Ltd
• Everest Reinsurance Company
• Transatlantic Reinsurance Company
• Flagstone Reinsurance Ltd
• Lloyds of London
• Renaissance Re
• Glacier Reinsurance AG