Updated 2 hours ago
Floridaâs property insurance market posted one of its worst financial performances in 2020, even without a hurricane making landfall in the Sunshine State, and policyholders are starting to pay the price.
Experts say there is no quick fix to the challenges buffeting the industry.
Fifty-six Florida insurers reported a combined $1.57 billion in underwriting losses, according to financial data obtained by the Tampa Bay Times, spending more on claims and expenses than they brought in through premiums. The figure marks the industryâs fifth consecutive year of losses in the state and is more than two-and-a-half times what those companies lost in 2019.
Florida s property insurance market is ailing There is no quick fix msn.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from msn.com Daily Mail and Mail on Sunday newspapers.
Regulator Deems Florida-Based American Capital Assurance Corp. Insolvent
After negative moves by ratings agencies last month to address its financial issues, Florida’s insurance regulator says American Capital Assurance Corp. (AmCap) is insolvent and should be placed in receivership,
In a letter dated April 2 to Chief Financial Officer Jimmy Patronis, Florida Insurance Commissioner David Altmaier said the Office of Insurance Regulation (OIR) has determined that grounds exist for the “initiation of delinquency proceedings” against AmCap. Included in the letter is a consent to order of receivership signed by AmCap “in which it admits that is insolvent.”
The Florida-based insurer, which focused on commercial residential and non-residential property risks, as well as flood coverage, had more than 1,900 policies in force in Florida as of Sept. 30, 2020, with nearly $80 million in annualized premium, according to OIR data. The company also writes business in Georgia, Louisiana
Ratings agencies say St. Petersburg insurer isnât financially healthy
American Capital Assurance Corp. was downgraded by both AM Best and Demotech Inc. this month.
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American Capital Assurance Corp. is a St. Petersburg-based insurer. Its financial health ratings were downgraded recently. Pictured is its website Thursday. | [Courtesy of American Capital Assurance Corp.] [ American Capital Assurance Corp ]
Updated Mar. 12
ST. PETERSBURG â Insurance ratings agencies lowered their assessment of a St. Petersburg insurerâs financial health last week, citing losses from severe storms last year.
AM Best downgraded American Capital Assurance Corp.âs rating from an âA-,â which is considered excellent, to a âC,â which is not, calling its financials âvery weak.â American Capital is a commercial property insurer that writes policies for buildings such as condos and apartment complexes, as well as commercial flood insurance. It has c
Demotech Withdraws Rating of American Capital, AM Best Issues Downgrade
American Capital Assurance Corp., a Florida-based insurer focused on commercial residential and non-residential property risks, as well as flood coverage, had its Demotech rating withdrawn and was downgraded by AM Best.
Demotech announced March 5 that it had withdrawn American Capital’s financial stability rating (FSR) of “A” after review and analysis of 2020 statutory financial information filed by the insurer and the company’s decision to no longer participate in Demotech’s rating process. As of March 4, 2021, American Capital Assurance Corp. is no longer followed or rated by Demotech.
“We advised AmCap we would no longer support an FSR at the A level and offered them an FSR of M or withdrawal,” Demotech Founder and President Joseph Petrelli said in an e-mail to Insurance Journal. “AmCap then opted to be not rated rather than rated M [moderate].”