Ross Buchmueller, president and CEO of the Plantation-based Privilege Underwriters Reciprocal Exchange, has announced the carrier has received $17 million from the state of Florida through the Insurance Capital Build-Up Incentive Program. PURE is a member-owned company that provides insurance to individuals with high-valued homes. Specifically, the carrier offers policies including windstorm coverage and excess flood coverage for homes valued at more than $1 million, which are built to meet both state and local building codes. It also provides fleet auto insurance, and coverage for jewelry and art. It also offers personal excess liability coverage with limits ranging from $5 million to $10 million.
By tapping into the $17 million in capital, the carriers will have a surplus of more than $50 million that will enable the company to write more business. The incentive program was implemented by the legislature in 2005 as a means of allowing companies to expand their surplus by borrowing money from the state in the form of surplus notes. The surplus note must be repaid over 20 years, subject to an interest rate based on the 10-year Federal Treasury bond. For the first three years, the company is only required to pay the interest amount on the note. A company can borrow up to $25 million or 20 percent of the total funds available under the program. Lawmakers appropriated a total of $250 million for the program, which is overseen by the State Board of Administration.
"We are delighted to have received this matching capital from the State Board of Administration and thousands of owners of well-built homes along the Florida coast will benefit from this additional surplus capital," said Buchmueller. "More than 5,000 homeowners with high-value properties are currently forced to buy their windstorm coverage through Citizens Property Insurance Corporation. PURE offers homeowners a new choice and our greater financial strength should provide some relief for Florida's insurer of last resort."
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