Fla.’s Citizens Gets Line of Credit

Florida’s Citizens Property Insurance said this week it has lined up $1 billion in credit and closed a deal to issue bonds for nearly another billion to pay hurricane claims if needed.

The state-backed company is now Florida’s largest property insurer.

Citizens Chief Financial Officer Sharon Binnun said the company closed the two separate deals, giving the company a total of more than $9.4 billion readily available to pay storm claims if needed.

In one transaction, the company lined up a $1 billion line of credit with a syndicate of banks led by Citigroup and J.P. Morgan. In the other, it announced a $950 million taxable auction-rate bond issue with a group of investment banks led by Citigroup.

Latest Comments

• July 5, 2007 at 1:06 am

  Nobody Important says:

  Everything done by the government in Florida is for effect. Most of it doesn't have any basis in fact, but it looks good to the voters. It's like waiting for the accident in... read more
• July 5, 2007 at 12:57 pm

  Gill Fin says:

  Governator came in to cut the fat. I think the over/under for Florida is three years. Once or twice the big ones hit look for a bankrupt State of Florida. In this day and age ... read more
• July 5, 2007 at 10:24 am

  ihop lover says:

  but all he has done is send even greater profits to Citibank and the Wall St. firms, all of whom make a greater profit margin than P&C insurers and none of whom are taking an... read more