NU Online News Service, Aug. 05, 12:00 p.m. EDT
One of Florida's largest homeowner insurers is asking for an average statewide rate increase of 21.7 percent.
Royal Palm Insurance Company, the sixth largest insurer of homeowner multiperil in Florida, has a hearing with the state Office of Insurance Regulation today.
The proposed effective date for the rate increase is Oct. 1, according to the filing.
The Gainesville, Fla-based insurer, whose voluntary business is written by Allstate and Tower Hill Insurance Group independent agents, posted a 2009 combined ratio of 116.2 and a net loss of $11.7 million, according to Highline Data, which is owned by Summit Business Media, which also owns National Underwriter.
Tower Hill became the company's managing general agent at the start of 2009, and in 2007 Royal Palm entered into an agreement with Allstate to assume policies they were not renewing.
Royal Palm was formed in 2006. All of its business is written in Florida.
Allstate's Castle Key subsidiaries recently had a rate hearing. Castle key Insurance is asking for a 33 percent increase and Castle Key Indemnity – the subsidiary writing new business in Florida – is asking for an 18 percent increase.
The Office of the Insurance Consumer Advocate said Allstate's request was too high.
The office will be present at the Royal Palm hearing.
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