Citizens Property Insurance Depopulation Committee Update

Oct 9, 2012

 

The Depopulation Committee (“Committee”) of Citizens Property Insurance Corporation (“Citizens”) is meeting today, Tuesday, October 9, 2012 in Orlando, Florida.  The Committee is discussing the Surplus Notes Program (“Program”). 

In a statement to the Committee members, Citizens President and CEO Barry Gilway announced that Citizens staff would recommend that the Program not be presented to the full Citizens Board of Governors (“Board”) at its October 19, 2012 meeting.  Mr. Gilway stated that the Program would undergo a comprehensive financial review and study by an outside financial advisor.  He also stated that Citizens would hold meeting with interested parties to answer any outstanding questions or concerns about the program.  

Mr. Gilway also moved that the Committee approve an emergency procurement of a financial advisor to perform the review of the Program.  He noted that Goldman Sachs or another firm approved by the Board would conduct the review.  

Mr. Gilway also noted that he remains hopeful that the Program will be presented to the Board at its December meeting and be implemented in advance of the 2013 Hurricane Season.

The Committee meeting is scheduled to conclude at 4:00 p.m. today.  A more detailed report will follow.

 

 

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