Citizens Property Insurance Board of Governors to Meet Today at 1:00 p.m.; Will Consider Hiring Outside Advisors to Conduct Surplus Notes Program Financial Review
Oct 19, 2012
Florida’s Citizens Property Insurance Corporation (“Citizens”) Board of Governors (“Board”) is scheduled to meet at 1:00 p.m. via conference call today, October 19, 2012. Board members will consider an Emergency Procurement for two outside advisors to conduct a comprehensive financial review and study of Citizens’ proposed Surplus Notes Depopulation Program (“Program”), which would dedicate a maximum of $350 million to support the assumption of Citizens policies by the private market, and could shrink Citizens by 25 percent.
In response to concerns from lawmakers and policyholders about the Program, Citizens’ Depopulation Committee agreed at its October 9 meeting to hire third-party financial advisors to evaluate it. This outside review will include an evaluation of potential benefits to Citizens and the Florida insurance-buying public through the potential reduction of exposure and potential catastrophe assessments in relation to risk undertaken. To read a complete Colodny Fass& Webb recap of that meeting, as well as details on the Program, click here.
Today, the Board will consider an Emergency Procurement for Financial Consulting Review Services for Goldman Sachs to conduct the external review, as well as for a second vendor to perform the same services. Citizens’ staff is expected to name a second vendor within two weeks.
To participate in today’s Board meeting, dial (888) 942-8686 and enter participant code 5743735657#. To access the meeting materials, click here.
A Colodny Fass& Webb representative will attend the meeting and provide a complete report.
Should you have any questions or comments, please contact Colodny Fass& Webb.
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