Since 2019, 10 property insurers that collectively wrote over 440,000 policies in Florida have been declared insolvent, amounting to a net cost to FIGA of about $1.6 billion, according to bond documents. Credit: Kuteich/Adobe Stock Since 2019, 10 property insurers that collectively wrote over 440,000 policies in Florida have been declared insolvent, amounting to a net cost to FIGA of about $1.6 billion, according to bond documents. Credit: Kuteich/Adobe Stock

(Bloomberg) — A Florida state agency is selling municipal bonds to backstop the state's homeowner's insurance industry after a surge of claims and litigation drove some insurers to shutter.

The Florida Insurance Guaranty Association (FIGA), which handles the claims of insolvent insurers, plans to borrow $600 million of bonds, according to preliminary offering documents. It is the first time in three decades the agency has tapped the municipal bond market to help support insurance claims.

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