Castle Key Insurance Companies Consider Removing Policies from Citizens
Apr 28, 2010
In a press release issued today, April 28, 2010, the Florida Office of Insurance Regulation (“OIR”) announced Castle Key Insurance Companies’ (“the Companies”) intention to write more than 50,000 new policies of new business during 2010 and 2011. Subject to OIR approval, these may include a transfer of Citizens Property Insurance Corporation policies through the take-out process.
In 2009, Allstate Floridian Insurance Company and Allstate Floridian Indemnity Company, which were property insurance subsidiaries of Allstate Insurance Company, changed their names to Castle Key Insurance Company and Castle Key Indemnity Company, respectively.
The Companies, which sell homeowners, condominium owners, renters and mobile home owners insurance throughout Florida, specify that property insurance policies they sell are not underwritten or reinsured by any other company in the Allstate group.
Today’s OIR press release is reprinted below.
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Castle Key Insurance Companies Consider Removing Policies from Citizens
The Florida Office of Insurance Regulation (Office) today announced Castle Key Insurance Companies are expanding their writing of homeowners and tenant insurance policies in Florida, and may potentially augment these writings with policies from Citizens Property Insurance Corporation (Citizens). Castle Key Insurance Company and Castle Key Indemnity Company (collectively referred to as Castle Key) are subsidiary companies of Allstate Insurance Company.
Castle Key has expressed its intention to write more than 50,000 policies of new business during 2010 and 2011, which may include Citizens’ policies. Citizens is the state-run insurer that primarily covers policies in high-risk counties, and is allowed to transfer these policies to private insurers through the take out process. Transfer of policies from Citizens to the private sector is subject to the approval of the Office. Castle Key is considering utilizing the Citizens’ take out process to meets its strategic objectives.
“This action reflects a new commitment by a large insurer to be engaged in Florida’s private property insurance market,” remarked Insurance Commissioner Kevin McCarty. “Castle Key is actively demonstrating leadership and confidence in the current economic and regulatory environment.”
Castle Key cited a number of reasons for considering Citizens’ policies including: four consecutive years without significant storm activity; the insurance company’s capacity to write additional policies; and a need to balance capital with exposure. At the end of 2009, Castle Key Insurance Company reported $155.9 million in surplus and 157,020 policies in Florida, while Castle Key Indemnity Company reported $14.1 million in surplus and 76,536 policies in Florida.
Castle Key’s expansion will include writing or taking out policies in all of Florida’s 67 counties.
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