Citizens Property Insurance Board Approves Weston Insurance Company Wind-Only Takeout
Feb 11, 2013
At a meeting this morning, February 11, 2013, the Citizens Property Insurance Corporation (“Citizens”) Board of Governors (“Board”) approved a quota share reinsurance treaty with Weston Insurance Company (“Weston”), paving the way for a takeout that will remove approximately $30 billion in exposure from Citizens’ Coastal Account.
Under this plan, Weston will remove 23,000 Personal Residential Wind-Only policies, 3,000 Commercial Residential Wind-Only policies and 5,000 Commercial Non-residential Wind-Only policies from Citizens’ Coastal Account.
The proposed takeout will result in an $840 million decrease in Citizens’ Coastal Account’s probable maximum loss (“PML”) in the event of a one-in-100-year storm.
The depopulation plan marks the first time in history commercial wind-only policies will have been removed from the Coastal Account. Commercial Residential Wind-Only policies comprise a majority of the total exposure removed, or about $22 billion worth of exposure.
A full report on today’s Board meeting is forthcoming.
To view the meeting materials, click here.
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