Florida Workers’ Compensation Joint Underwriting Association Board of Directors Retains Bonds
Feb 23, 2012
During a brief meeting, the Florida Workers’ Compensation Joint Underwriting Association (“FWCJUA”) Board of Governors (“Board”) today, February 23, 2012, unanimously voted to continue holding all existing portfolio investments, even though some bonds have been downgraded.
Bonds include Hewlett Packard, Citigroup, BellSouth Corp. and Amgen as authorized Investment Policy exceptions.
The Board also voted to authorize staff to book Milliman’s best estimates of the reserve for unpaid loss and loss adjustment expenses both net and gross of reinsurance for years 1994 through 2011 as well and unpaid loss adjustment estimate as of December 31, 2011.
In other business, the Board unanimously agreed to recommend the Board authorize staff to file the proposed revision the FWCJUA Complaint Resolution Procedure as amended for Office of Insurance Regulation (“OIR”) approve to become effective as soon as practicable.
FWCJUA Executive Director Laura Torrence also told the Board they are working on an exit strategy for the purpose of severing the relationship with FWCJUA investment manager Cutwater Investor Services Corporation because of concerns with the firm’s performance.
Ms. Torrence said a new investment manager will be selected using some type of competitive process similar to a Request for Proposal (“RFP”) or using an RFP. The FWCJUA contracted with Cutwater in April 2011 to provide non-discretionary investment management services following an RFP process. The Board will discuss a proposed exit strategy and selection process in March, she said.
With no further business before the Board, the meeting was adjourned.
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