Berkshire Hathaway's new financial guarantee insurer has received permission to operate in Florida, according to the state's Office of Insurance Regulation.
Florida Insurance Commissioner Kevin McCarty signed the certificate authority on Friday, said his spokesman Ed Domansky.
The commissioner foresees that this will bring more competition to the sector and will help stabilize the Florida municipal bond market, explained Mr. Domansky.
Currently, Mr. Domansky said there are 84 insurers licensed to operate in Florida, but the bulk of the municipal bond business is written by a few firms and the bulk of the guarantee business by about eight carriers.
In 2007 direct written premium for the top eight financial guarantee writers in Florida was: Mbia Insurance Corp., $41,053,006; AMBAC Assurance Corp., $23,575,980; Financial Security Assurance Inc., $18,182,437; Xl Capital Assurance Inc., $6,722,201; CIFG Assurance North America Inc., $2,949,908; Assured Guaranty Corp., $1,844,905; Radian Asset Assurance Inc., $1,338,739; and ACA Financial Guaranty Corp., $901,585.
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