25 September 2014 Insurance

Citizens ends hurricane assessments two years early

Citizens Property Insurance Corporation, the not-for-profit government entity created by the Florida Legislature, has ended policyholder assessments relating to the 2004-2005 hurricane season two years early.

The insurer said its board, by unanimous vote, has called upon Citizens to stop collecting a 1 percent emergency assessment that began in 2007 to pay off a 10-year, post-event bond with a total cost of $1.38 billion.

Citing growth in its assessment base, which is comprised of all Florida property insurance policyholders, Citizens chief financial officer Jennifer Montero told board members Citizens is expected to have sufficient resources in place by June 2015 to satisfy the bond’s balance. The assessments originally were scheduled to be collected through June 2017.

"When we came before the board last year, we recommended continuation of the 1.0 percent rate for another year in anticipation of the large reduction in the future, or even early elimination of the assessment,” Montero said. “We recommend the emergency assessment be eliminated two years early, effective July 1, 2015.”

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