(Bloomberg) -- Florida hasn’t been hit by a hurricane since2005, the longest stretch in more than a century. Its state-runproperty insurer isn’t taking any chances.
Even though forecasters predict this year will produce thefewest named Atlantic storms since 1997, Citizens PropertyInsurance Corp., which provides coverage when other insurers won’ttake the risk, is selling as much as $1 billion of municipal debtto raise cash just in case. It would be the insurer’s first bondsale in three years.
With hurricane season set to start June 1, Citizens is takingadvantage of interest rates close to generational lows to bolsterits claim-paying ability. Investors in the insurer’s tax-exemptbonds welcome the steps toward a sturdier balance sheet: One stormis all it takes to rack up billions of dollars of expenses.
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