It goes to my point Bill. I agree with you that a lot of these carriers setup shop to try to make a quick buck in the hopes the wind doesn’t blow.
There are other carriers however, that are prudent in their business plans and try to do the right thing to be in this for the long haul. Part of the reason Best won’t give a good rating is due to the mandatory participation in FHCF. One carrier in particular that I like to use refuses to purchase any optional FHCF reinsurance even though it’s 1/5 of private rates.
The DOI lets this happen. If the wind blows I will not blame the ponzi players, I will blame the ones who enable it to happen and not do their job in protecting the consumers of the state for political gains. Crist after years of bashing the insurance industry is running for Senate. He could care less if the wind blows. We need a Gov. and the Insurance Commissioner to work with carriers rather than against them. I think that is why State Farm postponed the leaving for another year to see if they can get someone who will not play politics with rate regulation and carriers solvency requirements.
Homeowners Choice is also taking 60,000 policies out of Citizens, too, more than doubling their current policy count of 53,000. American Keystone had somewhere around 10,000 policies, I think…
Their reserves were about $23 million last year.
Considering that American Keystone goes insovent without a hurricane in 4 years…and Homeowner’s Choice is so thin on it’s reserves…only 3 years old…and they primarily rely on the Cat Fund for their reinsurance…and they are currently rated D+ by Thestreet.com…I just get the feeling this is another financial disaster in the making.
I’m not defending Homeowners choice, I think I’ve made my opinion clear…but the best rating of any company currently writing is a C+ over at The Street. Obviously it’s their opinion that Florida is not a profitable place to do business.
Where’s Bill to say it’s one Ponzi taking the other Ponzi’s assets to run the cycle again?
As far as I know Homeowners Choice still isn’t writing voluntary business. In this case I may actually be inclined to agree with Bill.
LOL – Solvency, you got me with this one. Yes I have to agree with you. lol
It goes to my point Bill. I agree with you that a lot of these carriers setup shop to try to make a quick buck in the hopes the wind doesn’t blow.
There are other carriers however, that are prudent in their business plans and try to do the right thing to be in this for the long haul. Part of the reason Best won’t give a good rating is due to the mandatory participation in FHCF. One carrier in particular that I like to use refuses to purchase any optional FHCF reinsurance even though it’s 1/5 of private rates.
The DOI lets this happen. If the wind blows I will not blame the ponzi players, I will blame the ones who enable it to happen and not do their job in protecting the consumers of the state for political gains. Crist after years of bashing the insurance industry is running for Senate. He could care less if the wind blows. We need a Gov. and the Insurance Commissioner to work with carriers rather than against them. I think that is why State Farm postponed the leaving for another year to see if they can get someone who will not play politics with rate regulation and carriers solvency requirements.
The regulators are actually encouraging this kind of nonsense by forcing companies to participate in an insolvent cat fund.
There are very few homeowners options that I’m comfortable writing with at this juncture.
Homeowners Choice is also taking 60,000 policies out of Citizens, too, more than doubling their current policy count of 53,000. American Keystone had somewhere around 10,000 policies, I think…
Their reserves were about $23 million last year.
Considering that American Keystone goes insovent without a hurricane in 4 years…and Homeowner’s Choice is so thin on it’s reserves…only 3 years old…and they primarily rely on the Cat Fund for their reinsurance…and they are currently rated D+ by Thestreet.com…I just get the feeling this is another financial disaster in the making.
I’m not defending Homeowners choice, I think I’ve made my opinion clear…but the best rating of any company currently writing is a C+ over at The Street. Obviously it’s their opinion that Florida is not a profitable place to do business.
Additionally, The Street had American Keystone rated at C- (fair).