Health Insurance Forum

Florida Homeowners Insurance News

by mahir on 25/05/10 at 5:52 am

High reinsurance expenses and Florida-mandated alleviation credits given to homeowners herd 21st Century Holding Co. to a first-quarter net defeat of $927,000, but the company’s head executive thinks the reinsurance marketplace is prepared to turn around. Michael H. Braun, the president and chief executive officer, said in a conference call that “More than enough capacity has returned to the reinsurance marketplace, which we consider will drive behind reinsurance costs,” At this time last year the company reported $303,000 in earnings. Previous month, 21st Century (NASDAQ: TCHC) said it would not go through by means of a earlier announced purchase of Florida Home Insurance Co. and HomeWise Management Co. in a shift the company said would have diversified 21st Century and decreased reinsurance expenses as the insurer is typically a South Florida company.

Braun said 21st Century, of Lauderdale Lakes, Fla., has mainly been a writer in Dade, Broward and Palm Beach counties but continues to expand in other areas of the state.” now exposure organization, just cautious underwriting the risks we have — we imagine that there is significant improvement on our financials on a going-forward basis,” said Braun, who added that reinsurance expenses were offset by a 19% rate add to the company got on its voluntary business. In adding up, Federated National Insurance Co., a subsidiary of 21st Century, get an standard statewide homeowners insurance raise of 14.9% on policies Federated National unspecified from Citizens Property Insurance Corp., the state’s last-resort insurer, successful July 1 for latest and improved policies. The speed increases help the company get better on a net loss for the fourth quarter 2009 of $2.8 million. 21st Century posted a $10.3 million net loss for 2009, widening a $2.5 million loss for 2008.The predictable price to the company for reinsurance products for the 2009-2010 storm season was about $52.7 million, according to its first-quarter filing. Federated National does not currently have a Best’s Financial Strength Rating.In day trading on May 18, shares of 21st Century investment stock were selling at $5.48, down 2.66% from the preceding close.