The recent move by regulators in Florida to reduce collateral requirements for Bermuda-based XL Re and Germany-based Hannover Re is "part of an emerging trend by US regulators at both the state and national level that has the potential to lower collateral requirements for foreign reinsurers when they operate in the US", according to rating agency Moody's Weekly Credit Outlook on the reinsurance sector. Moody's observed that at the end of last year non-US reinsurers had posted $23bn in letters of credit as collateral for potential losses, compared with a $115bn market capitalization for the global reinsurance sector excluding ACE and Berkshire Hathaway. Moody's said that the Florida move would make the state better positioned to attract reinsurance capital, while the cost of doing business for foreign reinsurers would be reduced. "The only losers may be reinsurance buyers who will now have less security, but may also receive a better price, and US reinsurers who may lose some competitive advantage", Moody's said, noting also that New York had circulated draft amendments similar to the new Florida rules.