The Real Deal Miami

Insurers in better shape for major hurricane

May 25, 2010 10:30AM

After struggling in the beginning of 2009, property insurers are more prepared for a potential hurricane

Florida property insurers are ready for the next big storm if it comes
this year, at least with respect to the ability to borrow money to pay
for claims. Citizens Property Insurance and the Florida Hurricane
Catastrophe Fund, both state-run programs, will be able to borrow the
necessary money to pay. The state catastrophe fund has approximately $6
billion for 2010, with the capability of borrowing an additional $19
billion to meet further obligations as they occur. Citizens had a net
income last year of over $760 million, with $4 billion in claims-paying
reserves. Since the beginning of last year, Florida regulators have
given the nod to more than 100 property insurance hikes, along with
requiring 15 decreases. The increases came as a result of insufficient
premiums collected during the first half of the year. [Sun Sentinel]