Florida's Office of Insurance Regulation announced plans are underway to move 173,000 homeowners policies out of Citizens Property Insurance Corp., the state's insurer of last resort, to four private insurers.
The OIR said it has signed consent orders with American Integrity Insurance Company of Florida, Argus Fire & Casualty Company, First Home Insurance Company and Landmark One Insurance Company to begin taking out homeowners policies from Citizens' on Dec. 17.
"This is great news for the property insurance market in Florida," said Kevin McCarty, that state's insurance commissioner. "It is proof that the private insurance industry believes it can succeed and be profitable in Florida. And consumers will be offered policies at rates that are at or below Citizens' current rates."
Under the agreement, consumers will be notified beginning Nov. 7 and will have the option of declining the plan and remaining with Citizens. The consent orders say the insurers will have to keep rates at or below Citizens' rates for at least one year.
The department said the roll-back would put Citizens' policy count to pre-2007 numbers.
Earlier this year, the state legislature voted to expand Citizens' market by lowering the price threshold under which the insurer of last resort could provide insurance, freezing rates for Citizens and taking other measures to make insurance more affordable for the state's property owners.
Under the plan, Tampa, Fla.-based American Integrity will assume 75,000 homeowners, mobile homeowners and dwelling fire policies over six months--this is in addition to 90,000 policies it agreed to accept back in March.
Newly formed Landmark One, headquartered in Miami, will assume 50,000 homeowners policies over 18 months.
Jacksonville, Fla.-based First Home will immediately assume 30,000 homeowners and dwelling fire policies.
North Miami Beach Argus will assume 18,000 homeowners and dwelling fire policies over the next 18 months.
According to Highline Data, American Integrity was formed in 2006 and has $5 million in surplus on its books.
First Home Insurance was formed in 2005 and is affiliated with First Home Financial Corporation. In 2006 the company reported $2.5 million in net income on $16.5 million of earned premiums.
Argus Fire & Casualty is a part of United Automobile Insurance Group, which was found in 1989. Argus was created in 1996, according to its Web site. In 2006, according to Highline Data, the company reported net premiums written of more than $9 million and surplus of $9 million. The company reported net income of $2.4 million in 2006.
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