Castle Key Insurance Cos. are expanding their writings of homeowners and tenant insurance policies in Florida. According to a media release from the Florida Office of Insurance Regulation (OIR), Castle Key intends to write more than 50,000 of new business during 2010 and 2011. Some of that new business may include take-out policies from Citizens Property Insurance Corp. (pending OIR approval). Castle Key Insurance Co. and Castle Key Indemnity Co. are subsidiary companies of Allstate Insurance Co.

"This action reflects a new commitment by a large insurer to be engaged in Florida's private property insurance market," Florida Insurance Commissioner Kevin McCarty said. "Castle Key is actively demonstrating leadership and confidence in the current economic and regulatory environment."

Castle Key cited several reasons for considering Citizens' policies, including: four consecutive years without significant storm activity; the insurance company's capacity to write additional policies; and a need to balance capital with exposure. At the end of 2009, Castle Key Insurance Company reported $155.9 million in surplus and 157,020 policies in Florida, while Castle Key Indemnity Company reported $14.1 million in surplus and 76,536 policies in Florida. Castle Key's expansion will include writing or taking out policies in all of Florida's 67 counties.