St. Petersburg-based Mangrove Property Insurance, launched two years ago, has created its own reinsurance sidecar, the company announced.
Grove Re Ltd., domiciled in Bermuda, will be a Class 3A insurer, designed to support Mangrove’s risk management and underwriting. Mangrove CEO and founder Steve Weinstein said the re firm will help enhance Mangrove’s risk transfer efficiency and use of capital.
“The requirements to be licensed and operate in Bermuda are not trivial,” Weinstein said in a statement. “Our successful launch of Grove Re reflects Mangrove’s commitment to invest in both capabilities and financial protection to fulfil our mission of being a partner for the long-term with policyholders and agents across Florida.”
Weinstein
A Class 3A reinsurer must have a percentage of unrelated business that represents 50% or more of net premiums written or net loss and loss expense provisions, and where the unrelated business net premiums are less than $50 million, according to the Bermuda Monetary Authority.
Class 3A insurers are required to maintain minimum capital and surplus equal to or in excess of an amount derived from the greater of the Bermuda Solvency Capital Requirement (BSCR) calibrated to tail value-at-risk over the one-year time horizon, the minimum solvency margin (calculated using a premium-based formula and a reserve-based formula, and a $1 million floor, BMA explained.
Weinstein knows a bit about reinsurance and the impact of climate change on insurers and reinsurers. He was executive vice president and group general counsel for RenaissanceRe from 2002 to 2020, according to his Linkedin profile, and was chair of the extreme events committee for the Reinsurance Association of America for seven years.
Mangrove was granted a certificate of authority by the Florida Office of Insurance Regulation in January 2025. As of the end of March this year, Mangrove held 48,283 homeowner policies and 15,042 dwelling-fire policies in Florida, OIR reports show. The carrier reported direct written premium of just over $212 million for the first quarter this year.
Sidecar reinsurance vehicles may be growing in popularity for some insurers in the U.S. and abroad. Read more here.
Re-Related: Goldman Sachs, Talcott Launch $1 Billion Bermuda Reinsurance Sidecar
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