Hartford Group to Shed 27,000 Homeowners’ Policies in Florida
Feb 7, 2008
Insurance Journal–February 6, 2008
By Brian Kern
The Hartford Group, testifying in front of the Florida Senate Select Committee on Property Insurance Accountability Tuesday said they will implement a non-renewal program in Florida beginning in August. The year-long effort will affect 27,000 customers.
Tom Johnston, senior vice president and chief actuary for the Hartford Group spoke on behalf of the insurer Tuesday in Tallahassee, representing one of five insurance companies that were summoned to the capitol this week.
Committee member Sen. John Alexander asked Johnston if an approved rate increase would persuade the company to rethink their plans to shed policies.
Johnston said it is a capacity management issue and profitability in Florida is not foreseeable over an extended period of time.
The 27,000 policyholders represent about a third of Hartford’s homeowners’ policies in Florida. When asked if the company had found another venue for the insureds the reply was “no.”
The Hartford executives revealed that the company transacted a $1 billion stock buy-back in 2007.