Fla. Counts 8 Recently Arrived Insurers

The Florida insurance commissioner issued an announcement yesterday saying that with the hurricane season now underway, he was happy to introduce eight new carriers that have entered the state's property-insurance market.

"It gives me great pleasure to introduce new insurers to the state of Florida," remarked Insurance Commissioner Kevin McCarty. "These new companies not only provide much needed investment to our marketplace but demonstrate the commitment of the industry to continue to conduct business in our state."

The Florida Office of Insurance Regulation said that a week before the June 1 hurricane season started it had completed two new applications from carriers, bringing the total to eight new insurers entering the property and casualty insurance marketplace in Florida since January 1, 2007.

The new insurers, the OIR said, represent surplus lines, alien, foreign, and domestic property and casualty insurers. Together these entities represent $1.2 billion in capital investment.

Mr. McCarty's announcement said that while all insurers are important additions, the "most dramatic new entrant" is Ironshore Insurance Ltd., a Bermuda-based surplus lines company.

With nearly $1 billion in equity capital, Ironshore will serve a critical demand: covering commercial risk with wind exposures in the catastrophe-prone coastal states. On May 15, Ironshore also received approval to operate in South Carolina, according to OIR.

Two other surplus lines companies have received approval to write in Florida. Delaware-based Praetorian Specialty Insurance Company will write commercial multiperil and allied lines, while the United Kingdom-based Arch Insurance Company (Europe) Limited will target the commercial market by focusing on the energy risks of oil companies.

Praetorian Specialty has been licensed in Florida since 2001 as an accredited reinsurer, but has recently begun to expand into the surplus lines market.

Florida will also have four new domestic insurers and one domestic reciprocal. A reciprocal is an exchange in which each insured mutually insures other insureds in the group.

OIR said in the past week, Modern USA Insurance Company was admitted as a domestic insurer that will focus on mid-to-upper level homeowners insurance, while Olympus Insurance Company, also admitted this week, has plans to begin writing homeowners policies by the fourth quarter of 2007.

In addition, American Keystone Insurance Company will write homeowners insurance for values structured from $250,000 to $3 million. Homeowners Choice Property & Casualty Insurance Company announced that in July it plans to take out 15,000 to 20,000 policies from Citizens Property Insurance Corporation, the state insurer of last resort.

The only reciprocal company in this group of companies, Privilege Underwriters Reciprocal Exchange Inc., said it will target high-net-worth clients in Florida in the homeowners and personal auto lines.