Property Insurance: General

Insurance Commissioner Kevin McCarty responded in a July 1, 2009, letter to Rep. Bill Proctor to questions involving new insurers who have come to Florida since the 2004/2005 hurricane seasons and addressing a dispute over the amount of new capital brought to the state by companies who are authorized carriers and not basically unregulated surplus lines insurers. Proctor was House sponsor of the rate deregulation bill (HB 1171) opposed by McCarty and vetoed by Governor Crist.

The letter and support documents provide very good information on insurers who have began operations in Florida since January 1, 2006, including members of the growing Florida-based segment of  the property insurance market.

New Property Insurers for Florida

A June 1 news release by Citizens Property Insurance Corporation:

TALLAHASSEE:  Citizens has secured pre-event financing to ensure claims are paid in a
timely manner if a storm hits Florida.  Citizens' claims-paying ability is solid, with access to $16 billion based on surplus, reinsurance, pre-event bonding and lines of credit. 

"We are very pleased with the successful bond issuance of $1.64B for the High Risk Account, especially in the difficult financial market environment," said Sharon Binnun, Chief Financial Officer for Citizens.

"Combined with the $400M credit line for the Personal and Commercial Lines Accounts from a syndicate of banks, this $2B of additional liquidity helped us achieve the $16 billion of total liquidity, in preparation for the 2009 hurricane season."

Citizens' issuance of multi-year bonds in laddered maturities from a broad investor base ensures a financially responsible approach to providing some permanent liquidity financing and signals a strong endorsement of and demand for Citizens' bonds. 



A June 1 news release by Citizens Property Insurance Corporation:

TALLAHASSEE:  Citizens has secured pre-event financing to ensure claims are paid in a
timely manner if a storm hits Florida.  Citizens' claims-paying ability is solid, with access to $16 billion based on surplus, reinsurance, pre-event bonding and lines of credit. 

"We are very pleased with the successful bond issuance of $1.64B for the High Risk Account, especially in the difficult financial market environment," said Sharon Binnun, Chief Financial Officer for Citizens.

"Combined with the $400M credit line for the Personal and Commercial Lines Accounts from a syndicate of banks, this $2B of additional liquidity helped us achieve the $16 billion of total liquidity, in preparation for the 2009 hurricane season."

Citizens' issuance of multi-year bonds in laddered maturities from a broad investor base ensures a financially responsible approach to providing some permanent liquidity financing and signals a strong endorsement of and demand for Citizens' bonds.