Florida Insurance Commissioner Kevin McCarty approved the merger of AmCOMP with Employers Holdings Inc. and required AmCOMP to repay $8.4 million in excessive profits to its Florida policyholders.
AmCOMP ‘s insurance subsidiaries will repay $2.8 million in excessive profits it realized for accident years 2003, 2004 and 2005. It also will repay $5.6 million for excessive profits for accident years 2004, 2005 and 2006.
The AmCOMP merger with Employers is expected to be completed in late October.
Florida law states that workers’ compensation insurers are required to return profits in excess of 5 percent. The Office of Insurance Regulation evaluates a variety of data including earned premium and incurred losses to determine if the insurers realized an excess profit for the three most recent calendar/accident years reported.
AmCOMP is an insurance holding company that specializes in workers’ compensation insurance for small- to mid-sized employers. Employers also is a holding company specializing in workers’ compensation insurance for small businesses working in low-to-medium hazard industries.
Source: Florida Office of Insurance Regulation
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