Florida has lowered its barriers of entry to Bermuda-based Renaissance Reinsurance Ltd.The hurricane-prone state has now approved seven reinsurers to have lower collateral requirements, six of them based in Bermuda.The new rules are based on legislation passed in the Sunshine State in 2007, allowing Florida's Office of Insurance Regulation to establish lower collateral requirements for reinsurers based outside the US that are highly-rated and financially sound.The other companies approved to operate with modified collateral requirements include German giant Hannover Ruckversicherung AG, its Bermuda unit Hannover Re (Bermuda) Ltd, as well as XL Re Ltd, Ace Tempest Reinsurance Ltd, Hiscox Insurance Co. (Bermuda) Ltd, and Partner Reinsurance Co Ltd.The Association of Bermuda Insurers and Reinsurers has previously described high collateral requirements of some US states to be “an impediment to cross-border trade”.The high collateral requirements have been a major limitation factor in the amount of reinsurance that companies based outside the US have been able to write. Florida is so far the only US state to approve a rule imposing lower collateral requirements on qualifying non-US reinsurers. The price of property insurance in the wind-prone, south-eastern state is a major political issue.Florida's actions have raised hopes that other US states will follow suit.As of December 31, 2009, RenRe had $1.49 billion in statutory capital and surplus as reported in its statutory financial return on a stand-alone basis. AM Best rates the financial strength of the company as A+ (superior); Standard & Poor's ranks the company's financial strength as AA- (very strong).