XL Re Ltd. has become the first Bermuda company to qualify as an 'eligible reinsurer' in Florida after receiving approval from the Florida Office of Insurance Regulation.

XL Re is the first of its kind to get such approval since the US state passed a rule based on 2007 legislation allowing the office to establish lower collateral requirements for foreign reinsurers that are highly rated and financially sound.

In its consent order, the office cited various reasons for granting approval to XL Re, including its secure financial strength ratings and its domiciliary regulatory jurisdiction.

James Veghte, chief executive of XL's reinsurance operations, said: "This is good news for XL Re, the Bermuda market, and Florida. We are encouraged that Florida is helping lead the way in elimination of unnecessary collateral requirements on foreign reinsurers.

"We remain fully committed to meeting the reinsurance needs of our clients in Florida and around the globe. I also want to extend my gratitude to my XL colleagues who worked with the Florida Office of Insurance Regulation on obtaining this approval."