Citizens Issues Investment and Liquidity Overview Statement

Citizens Property Insurance Corporation (“Citizens”) has issued a comprehensive statement expressing that it is “disappointed” in the recent developments leading to the temporary freezing of assets in Florida’s State Board of Administration (“SBA”) Local Government Investment Pool (“LGIP”).

Advising that it has communicated regularly with the SBA during the past several months as market conditions have negatively impacted those securities managed by the SBA on its behalf, Citizens assures that “appropriate and available actions” have been taken to minimize any damage to its financial structure caused by the market illiquidity of certain of these securities.

Citizens assures that this crisis does not present liquidity issues with regard either to its routine operating expenses or ongoing debt service requirements.

In the meantime, Citizens has ample liquidity from both operating and investment sources to meet its routine cash flow needs for both operating expenses and debt service.

Citizens statement, which includes a listing and charts of invested assets as of November 30, 2007, is attached for your review.

 

Should you have any questions or comments, please do not hesitate to contact this office.