Moody's Investors Service lowered its outlook on High Risk Account (Citizens HRA) of Citizens Property Insurance Corporation to negative from stable, reflecting the Florida insurer's heavy catastrophe losses during 2005.
Moody's affirmed the "A2" senior debt rating on the Personal and Commercial Lines Account and the "A3" senior debt rating on the Citizens HRA.
Besides the catastrophe losses, Moody's said it based its decision on the potential for significant increases in risk exposures for the future, as private market insurance companies scale back their Florida homeowners insurance exposures.
Citizens is the state's homeowners insurer of last resort formed in August 2002.
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