A state program in Florida designed to encourage insurers towrite homeowners coverage has now approved $90 million in surplusnotes for four companies, according to a spokesman.
|Under the Insurance Capital Build-Up Incentive Program,companies that apply for the support must submit a business plan tothe program's board and write a prescribed ratio of residentialbusiness.
|The carriers are required to make quarterly reports of theirresidential coverage amounts and be certified by the Florida Officeof Insurance Regulation as being in compliance.
|Board spokesman Jack Nicholson said the agency expects toexecute a note this week and distribute $25 million to UniversalProperty and Casualty Insurance Company. The firm is a subsidiaryof Universal Insurance Holdings.
|The notes will be issued in connection with the program.
|Universal's approval under the program was contingent upon itsmatching the surplus note funds. The company said last week that itexpects the note will have a 20-year term and an interest rate tiedto the 10-year U.S. Treasury Bond rate.
|Universal said it was finalizing the financing necessary to meetthe matching obligation under the program.
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