Florida's top private homeowners' insurance writer Poe Financial said its subsidiary that insures condominiums and homeowners associations will cease writing new policies or renewing old ones until it raises new capital.

The company informed its agents of the decision this week. Its action follows more than $2 billion of gross losses and over 125,000 claims from the 2004 and 2005 hurricane seasons, the Poe said.

Poe's move is expected to force more people into the state-run insurer of last resort, Citizens Property Insurance, already South Florida's largest insurer. The affected company, Southern Family Insurance Co., has about 40,000 customers, according to Tracy Upton, a company spokesman.

Two other companies, Florida Preferred and Atlantic Preferred, will continue doing business as usual, Mr. Upton said.

Poe has 316,000 policyholders in Florida, most of them in Broward and Palm Beach counties, Mr. Upton said. It is the second largest homeowners' writer in the state, behind Citizens, he added.

Poe is a privately held company based in Tampa. It was started in late 1996 as a spin-off of Poe & Brown Insurance Co., now Brown & Brown.

Jim Wurdeman, Poe president and chief executive officer, said, "It should be no surprise that the activity from the 2004 and 2005 hurricane seasons has been substantial."

He added, "The underwriting action we are taking will not affect our response to policyholders that have current or future claims with us. Rather, we are taking necessary and appropriate action as stipulated by Florida statutes and that are in the best interest to position the organization for the future."

Special Reports /

Big Fla. Home Insurer Cutting Its Book

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