Florida's insurance department says it has approved a plan bythe state's Citizens Property Insurance Corp. to remove 150,000homeowners policies to four private-sector companies.

In a statement, the department says the take-out, to begin Nov.6, will add to the total of 84,339 policies already taken out ofCitizens this year.

“The leadership and commitment by Florida's domestic companiesto expand their business in our state sends a clear signal that wehave a reinvigorated homeowners insurance marketplace,” saysFlorida Office of Insurance Regulation Commissioner Kevin McCarty.“It gives me great pleasure to announce that the latest take-outfigures have the potential to make 2012 the largest take-out yearfor Citizens since 2008.”

The following companies will participate in the latesttake-out:

• Florida Peninsula Insurance Company: 35,000 policies.
• Homeowners Choice P&C Insurance Company: 75,000policies.
• Southern Fidelity P&C, Inc.: 30,000 policies.
• Southern Oak Insurance Company: 10,000 policies.

The department notes that all the take-out companies arerecently licensed Florida domestics, beginning in 2004 withSouthern Oak to Southern Fidelity in 2012.

These four companies employ 239 Floridians.

The department says that a final figure of policies removed fromCitizens will not be known until after a 30-day period under whichpolicyholders will have the right to decline assumption of theirpolicy by a private company and remain with Citizens.

The policyholders will be notified of the take-out request onOct. 1, and can choose to accept or decline the take-out offer, thedepartment says. If policyholders do not respond, the policywill be assumed by the private sector company on Nov. 6.

The department says that regardless of how many do leaveCitizens under the plan, the 2012 totals are expected to exceed thetotals in 2009 (149,645 take-outs), 2010 (59,792 take-outs), and2011 (53,577 take-outs).

The department says four other companies expressed interest intaking out policyholders from Citizens, but their approval wascontingent upon approval of surplus-note program and review of theprogram by the insurance office.

The department says it sent a letter to Citizens urging it toexpedite take-out requests that do not involve “a financialincentive, such as a surplus note.”

According to an SNL Financial ranking of homeowners multi-perilinsurers in Florida, in 2011 Florida Peninsula had assets of morethan $206 million, more than $188.5 million in direct writtenpremium, was ranked 9^th with 2.4 percent of the marketand had a combined ratio of 96.4.

Homeowners Choice had more than $175 million in assets, lessthan $127 million in direct written premium, had 1.61 percent ofthe state's market and had a combined ratio of 90.

Southern Fidelity Insurance Co. had more than $174 million inassets, close to $155 million in direct written premium, had 0.96percent of the market and had a combined ratio of 101.2.

Southern Oak Insurance Co. had close to $77 million in assets,less than $85 million in direct written premium, had 0.79 percentof the market and had a combined ratio of 96.2.