The Real Deal Miami

One-quarter of Florida property insurers get low ratings from Weiss

May 31, 2011 04:21PM

Nearly one-quarter of private property and casualty insurers in Florida have received “D” or “E” ratings by Weiss Ratings, meaning they’re at risk of going under with the next major weather disaster in their regions. According to the South Florida Business Journal, the Jupiter-based firm bestowed the low financial strength ratings upon 29 insurers in the state based on their positions at the end of 2010. The second-largest insurer in the state, State Farm Florida Insurance, has $888 million in homeowner premiums and got a “D” from Weiss after posting a $66.2 million loss last year. The third-largest insurer, University Property and Casualty Insurance, which has $507 million in premiums, lost $9.9 million last year and got an “E+” rating. Only two insurers were below the state’s minimum requirement of $5 million in capital and surplus — a requirement that is set to increase to $10 million in July 2016 and $15 million in July 2012. [SFBJ]