By David Bull

June 29 - (The Insurer) - Nephila again wrote the largest line size across the traditional XoL reinsurance placement for Florida’s state-backed carrier Citizens Property Insurance Corporation.

As previously reported, the residual insurer’s new risk transfer program of $2.89 billion placed at June 1 at the start of the 2025 hurricane season includes $1.369 billion in the traditional market and $1.525 billion in the capital markets.

There is also $1.60 billion of multiyear coverage rolled over from 2023 and 2024.

Last year, funds managed by Markel-owned Nephila wrote almost 30% of the $1.96 billion of reinsurance limit then secured by Citizens, taking over the role of the program’s biggest reinsurer from Berkshire Hathaway, which came off the XoL cover.

And according to a breakdown of reinsurers on the 2025 placement seen by The Insurer, funds managed by Nephila were again the largest participant on this year’s cover, albeit with a slightly lower share of a smaller overall traditional market placement.

Listed as Nautical Management Ltd, Nephila-managed funds participated with a modest $10.0 million line through Lloyd’s Syndicate 2357, and a much larger $350.3 million of limit on the paper of Markel Bermuda Limited.

The Bermuda participation included 31.75%, or $125.1 million of the $394.0 million xs $2.547 billion Sliver layer around the Florida Hurricane Catastrophe Fund (FHCF), which was placed 100% and priced with a 20.75% rate on line $(ROL)$.

It took 15.6%, or $110.8 million of the $711.0 million xs $2.941 billion first layer, which was priced at a 15.00% ROL; 6.2%, or $74.5 million of the $1.200 billion xs $3.652 billion second layer, which was placed 27.08% at a 12.25% RoL; and 3.3% or $76.8 million of the $1.2000 billion xs $6.052 billion fourth layer, which was 20.8% placed at an 8.75% RoL.

The second- and third-largest participants were collateralized writers Aeolus and DE Shaw, with $155.1 million, or 11.34%, and $138.9 million, or 10.14%, respectively.

Domestic U.S. reinsurers Swiss Re America, Everest Re, Trans Re, Odyssey Re and Munich Re occupied positions four to eight, respectively, among the biggest writers on the program with shares running from 6.9% down to just under 5.0% (see table).

Pillar Capital behind Hannover Re had a 4.79% share overall on the program, with Ariel Re Bermuda rounding out the top ten writers with 4.55% of the program.

“The new risk transfer program for 2025 of $2.89 billion includes $1.369 billion in the traditional market and $1.525 billion in the capital markets, and has a net ROL of 11.95%, which is 13.5% lower than the net ROL line for the new risk transfer program in 2024 of 13.81%,” said Citizens.

“The 2025 risk adjusted price reflects substantial improvement in market conditions,” Citizens noted.

“For coverage placed in 2025, the price is approximately 13.5% lower than it would have cost for similar coverage in 2024,” it added.

Completing the placement comes after Citizens said its staff “worked extensively” with its traditional reinsurance broker Gallagher Re and its capital markets co-underwriting team of Aon Securities and GC Securities, along with financial advisor Raymond James, to market its traditional and capital markets risk transfer program via roadshows and one-on-one meetings with reinsurers and investors.