Citing fourth quarter losses in Florida of $19 million, Mercury General said it would begin the process of withdrawing from the state’s homeowners insurance market.
The company said it will send the mandatory 180-day advance notice of its intent not to renew its 8,000 Florida policyholders beginning in March. It expects the withdrawal to be complete in the second half of 2012.
The $19 million loss includes $6 million reserves set aside for future claims. The company said many of the losses related to sinkholes, which other carriers and state officials have cited as a major driver of insurance costs in the state.
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