Property insurers in Florida feel pressure

North America/Bermuda

The increasing financial pressure on property insurers in Florida in the wake of record catastrophe losses from the 2004 and 2005 hurricane seasons was once again in evidence. Poe Financial Group of Tampa announced that it would no longer issues new home insurance policies or, in some cases, renew the cover of existing customers. Southern Family Insurance Company, a Poe Group subsidiary, will not write any new homeowners’ business; this includes not renewing the cover of existing companies. However, two other Poe subsidiaries will renew the policies of existing customers, but will not write any new business. Poe Financial Group suffered hurricane losses of close to $2bn over the last two years. Homeowners who can’t find cover in the private market will be insured by State of Florida’s Citizens Property Insurance Corporation which serves as the insurer of last resort. Poe Financial Group insisted that, despite its drastic decision, it was well able to meet all its financial obligations.