A state program in Florida designed to encourage insurers to write homeowners coverage has now approved $90 million in surplus notes for four companies, according to a spokesman.
Under the Insurance Capital Build-Up Incentive Program, companies that apply for the support must submit a business plan to the program's board and write a prescribed ratio of residential business.
The carriers are required to make quarterly reports of their residential coverage amounts and be certified by the Florida Office of Insurance Regulation as being in compliance.
Board spokesman Jack Nicholson said the agency expects to execute a note this week and distribute $25 million to Universal Property and Casualty Insurance Company. The firm is a subsidiary of Universal Insurance Holdings.
The notes will be issued in connection with the program.
Universal's approval under the program was contingent upon its matching the surplus note funds. The company said last week that it expects the note will have a 20-year term and an interest rate tied to the 10-year U.S. Treasury Bond rate.
Universal said it was finalizing the financing necessary to meet the matching obligation under the program.
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