It's likely the goal of all property insurers in Florida, butthe newest to enter the market hopes to be truly "epic."

The Florida Office of Insurance Regulation has licensed ElementsProperty Insurance Co. (EPIC) to write homeowners insurance inFlorida—a state always in need of addition capital due to its highrisk of hurricanes, alleged fraud, and other perils such assinkholes.

"I think it's a good time to start," says Robert L. Ricker,president of the new insurer. "On a macro level, the real-estatemarket is rebounding. And rates are going up in the market inrational way. The state has done some good legislative thingsrecently regarding sinkholes and curbing fraud."

Ricker is no stranger to the Sunshine State. He was president ofFlorida Citizens Property Insurance Corp., the last-resort insurer,from 2003-2006, which means he lived through the infamous 2004-2005hurricane seasons—seasons that some would argue led to apredicament in Florida from which it is now recovering.

Private insurers fled or drew back from the coast of Florida dueto hurricane risk and a reluctance by legislators and regulators toallow them to charge rates to match that risk. Shortly after Rickerleft Citizens, its rates were frozen for several years and thestate-backed insurer ballooned to become the largest propertyinsurer in the state—a title Citizens still holds, but one that itis working hard to shed with, among other strategies, a renewedcommitment to a depopulation program.

Tallahassee-based EPIC will grow its book of business in thismanner. State regulators have approved EPIC to attempt to take out45,000 policies from Citizens, starting in December, saysRicker.

"I think there are policies to be had; we'll be careful andselective in the policies we assume," Ricker says. "But I thinkthere are good risks in there. Our main focus with any risk toinsure it for the long term."

Therein lies the challenge. EPIC won't be inserting 45,000policies onto its paper immediately. Citizens policyholdersearmarked for removal by EPIC have an option to opt out and remainwith Citizens. And even if they chose EPIC they can always wind upback with Citizens—still oftentimes the cheapest option—atrenewal.

Ricker says it's "too early to estimate" how many policies willwind up with his company, but he has the confidence of some majormarket players—allowing him to raise $26 million in capital and afinancial strength rating on A from insurance rating agencyDemotech Inc. Ricker says Axis Re and Dowling Capital Partners areinvestors. For Dowling, it's the first investment the privateequity firm has made in Florida, according to Ricker. Ricker saysthe level of his investors gave him a "great vote ofconfidence."

Ricker says EPIC will roll of a voluntary market program inFebruary, using independent agents he is currently schooling on thenew insurer—a process he says is positive.

"You need to get the right business at the right price and wethink that's possible," Ricker says. "With that you must focus onmanaging day-to-day claims, and keep reinsurance costs inline."