Citizens exposure reduces by $85.6bn

Citizens Property Insurance Corporation, the Florida not-for-profit insurer, has reduced its policy count and exposure by over 20 percent.

Citizens’ policy count has decreased by 21.8 percent, reducing exposure by 22 percent to $229.2 billion. This is an $85.6 billion reduction in overall exposure and 27 percent drop in policies since January 2014.

The insurer said that the storm-free year has allowed it to continue building its surplus, which, coupled with Citizens’ reduced exposure and enhanced reinsurance program, further decreases assessment risk for all Floridians and makes rate relief possible for many Citizens policyholders.

With the inclusion of November figures, 335,692 policies have been removed or are in the process of being removed from Citizens in 2014. This represents a 6.5 percent increase over 2013 takeouts during the same timeframe.

“Citizens already is looking ahead to 2015, capitalising on the growing strength and vibrancy of Florida’s private insurance market to increase consumer access to private-market insurance options through its property insurance clearinghouse and depopulation programme,” said Barry Gilway, Citizens president and chief executive officer. “The success of these programmes, along with favourable pricing in the international reinsurance markets, put Citizens on an even stronger financial footing heading into 2015.”

Chris Gardner, chairman of the Citizens board of governors, added: “We have been fortunate to have avoided a major hurricane for nine years, but Florida must continue its preparation for the next major windstorm. Citizens remains steadfast in its efforts to shore up its foundation and reduce assessment risk for Floridians by helping property owners find coverage outside Citizens and ensuring that we provide quality service to those who still count on Citizens to protect their homes and businesses.”