Northern Capital Insurance Co. to Begin Writing Homeowners Policies in South Florida in 2005

October 22, 2004

Northern Capital Insurance Company announced it plans to begin writing homeowners policies in Southeast and Southwest Florida in 2005.

Alexander Anthony and Albert Fernandez, the principal shareholders of Citizens Insurance Agency Inc., a 22-year-old insurance agency located in Miami, announced they are expanding their insurance services to the homeowners of Florida by forming a new property and casualty company.

According to Anthony, "The withdrawal of insurance carriers from Florida since Hurricane Andrew struck in 1992 has made it difficult for many homeowners in South Florida to buy insurance from private insurers. Now, with the devastation caused by four hurricanes already hitting Florida in one season; insurance companies are again restricting the number of new homeowners' policies they will write in our state. This will make it even more difficult for new homeowners to purchase the coverage they need to protect their homes from future hurricanes."

The only choice most South Florida homeowners currently have is to purchase insurance from Citizens Property Insurance Corporation, the state's insurer of last resort. Albert Fernandez, explained that, "He hopes the formation of Northern Capital Insurance Company will provide an alternative for many new homeowners so they will be able to purchase homeowners coverage from a private insurer for less cost than purchasing coverage from the state-run Citizens Property Insurance Corporation."

Northern Capital Insurance Company has reportedly received a permit to become an insurer in the state of Florida and is in the process of raising funds from investors to help capitalize the company. Investors interested in investing can find information about Northern Capital Insurance by visiting www.northerncapitalinsurance.com.

Northern Capital Insurance Company reportedly plans to insure 10,000 homes in 2005 and hopes that in the next five years the new company will be able to offer insurance to more than 25,000 homeowners in the South Florida area.

J.C. Miguelez, vice president of Operations for Northern Capital Insurance Company, added, "Our new company will be a consumer oriented organization emphasizing timely and adequate claims payments and total customer satisfaction." Miguelez said that when he was a Director at the Florida Insurance Commissioners Office in South Florida he observed numerous situations where insured's received inadequate claims payment, were mistreated and forced to hire an attorney in order to get properly compensated after a hurricane... "This experience taught me the importance of an insurance company providing superior customer service."

Wayne Fletcher, president of Northern Capital Insurance Company said that, "There is no relationship between Citizens Insurance Agency Inc., the agency owned by the founders of Northern Capital Insurance Company and the state sponsored Citizens Property Insurance Corporation, even though they have similar names."