Florida's insurance department says it has approved a plan by the state's Citizens Property Insurance Corp. to remove 150,000 homeowners 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 of Citizens this year.

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

The following companies will participate in the latest take-out:

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

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

These four companies employ 239 Floridians.

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

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

The department says that regardless of how many do leave Citizens under the plan, the 2012 totals are expected to exceed the totals in 2009 (149,645 take-outs), 2010 (59,792 take-outs), and 2011 (53,577 take-outs).

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

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

According to an SNL Financial ranking of homeowners multi-peril insurers in Florida, in 2011 Florida Peninsula had assets of more than $206 million, more than $188.5 million in direct written premium, was ranked 9^th with 2.4 percent of the market and had a combined ratio of 96.4.

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

Southern Fidelity Insurance Co. had more than $174 million in assets, close to $155 million in direct written premium, had 0.96 percent 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 percent of the market and had a combined ratio of 96.2.

Special Reports /

Regulator Approves Take-Out of 150,000 Homeowners Policies from Florida Citizens

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