By any measure, Poe Financial Group was a success story when it came to Florida's homeowners' market. Unlike other take-out companies, Poe promised to be here for the long haul. Poe took this commitment seriously as it placed three insurers under its umbrella, which, combined, became the second largest private carrier in South Florida. That, however, was before eight hurricanes and four tropical storms decided to leisurely make their way across the state within 15 months.

As a result, the company has had to pay out some $2 billion in hurricane damage due to the 2004 and 2005 hurricanes, an estimate that is expected to grow as the 2005 claims continue to develop. Add to that fact a myriad of complaints from consumers whose homes have yet to be repaired and the fact that the 2006 hurricane season is just weeks away, the company faced two options. Shed its exposure as quickly as possible, or close its doors and let the chips fall where they may.

Faced with two unpalatable options, Poe announced it has decided to non-renew 186,000 homeowners' and condominium policies that are covered through Atlantic Preferred and Southern Family. Poe has also announced that its third insurer, Florida Preferred — which has 145,000 policies in force — will no longer write new business. Whether this will save the parent company remains to be seen. But the fact is that Poe is not a fly-by-night company staffed with incompetent management. The company just fell victim to nature and, therefore, represents an abject lesson. Namely, even with the best of intentions, trying to make it in Florida's high-risk homeowners' market is a dicey proposition.