Significant portions of the losses are due to investments made by the State Board of Administration on Citizens' behalf. The SBA manages funds for private and public money, and had been given Citizens funds to invest in the hope of a higher return with a lower fee charged to the insurer for the service.

According to Ms. Binnun, Citizens has almost $95 million invested in a state fund that has been frozen due to concerns that a downturn in the mortgage market could trigger a run on the fund. The securities held by Citizens in that fund, she told the board, have declined sharply in market value and will cause a write-down on the books.

Citizens' net premium earned was also down, although the causes of that may not necessarily be a bad thing. Citizens is writing fewer policies, Ms. Binnun told the board, and the “takeout rate” at which private insurers remove policies from Citizens' books has been more aggressive.

Citizens was also required to double the “mitigation credit” given to policyholders who act to protect their homes from future damages. Citizens anticipates that roughly half of its policyholders will apply for credits next year, equaling a discount on average of 42 percent off their premiums, or $640 million total.

So far this year, 46 percent of policyholders have applied for credits totaling $470 million.