Citizens Finance and Investment Committee Meeting Report: February 17
Feb 18, 2009
On Tuesday, February 17, 2009, the Citizens Property Insurance Corporation (“Citizens”) Finance and Investment Committee (“Committee”) met to discuss an update on Citizens’ 2009 Pre-Event Liquidity Program, as well as overviews of its investment portfolio and returns. To view the meeting agenda, click here.
Committee Chairman Jim Malone called the meeting to order. Because a quorum was not met, no action was taken during the meeting.
Citizens’ financial advisor, John Forney from Raymond James & Associates, gave a brief update on the 2009 Pre-Event Liquidity Program. During its January 29 meeting, Citizens’ Board of Governors (“Board”) approved Mr. Forney’s suggestion that Citizens renew its Personal and Commercial Lines Accounts bank line of credit for $400 million and purchase between $2 and $3 billion in external liquidity for its High-Risk Account. To view a summary of the January 29 Board meeting, click here.
Since the Board meeting, Citizens’ Financial Team has been planning in order to meet liquidity goals. The Financial Team, which held initial meetings with financial institutions, rating agencies, and the Florida Office of Insurance Regulation is expected to present its liquidity plan at the March 2009 Board meeting.
Citizens’ Chief Financial Officer, Sharon Binnun, gave an overview of Citizens’ investment portfolio and returns.
During its most recent meeting, the Board approved a revised investment policy. As a result, approximately $5.7 million unrealized gains and losses in securities (primarily those formerly managed by the State Board of Administration) are no longer compliant with Citizens’ ratings guidelines. Six of these 15 now-non-compliant securities are set to mature in 2009. After those securities mature, the unrealized gains and losses amount will be approximately $5.2 million. To view charts describing Citizens’ investments, click here.
Ms. Binnun, along with Citizens’ Staff, is in the process of contracting with new asset managers to develop a proposal to address compliance issues. It is anticipated that this proposal will be presented to the Board at its next meeting.
As of December 31, 2008, the total market value of Citizens’ managed assets was approximately $7.6 billion. A table detailing Citizens’ investment returns may be viewed by clicking here.
The meeting was then adjourned.
Should you have any questions or comments, please do not hesitate to contact Colodny Fass.
To unsubscribe from this newsletter, please send an e-mail to ccochran@cftlaw.com