News Release: Southern Oak Insurance Company Financially Sound–Office of Insurance Regulation Order lifted
Mar 15, 2010
This news release was issued by the Southern Oak Insurance Company on March 12, 2010.
Jacksonville, FL — Southern Oak is pleased to announce the quick resolution of concerns expressed by the Florida Office of Insurance Regulation (OIR) in its March 9, 2010 Order. Southern Oak Insurance Company and the Florida Office of Insurance Regulation have agreed to a Consent Order entered March 12, 2010, resolving all questions concerning the status and operations of Southern Oak.
At the request of the Office, Southern Oak has agreed to reduce the fees paid by the insurance company to its affiliated management company. The order notes that Southern Oak has already voluntarily begun this process by reinvesting capital in 2008 and 2009. The OIR wanted to restructure payments so that in the future less money would be paid out of the insurance company initially thus reducing the need for subsequent reinvestment. Southern Oak readily agreed to an equitable revision of the management contract.
As part of the Consent Order Southern Oak will also submit a plan to the OIR that reduces its wind exposure to less than 30% of its total exposure in the tri county area.
“We are most appreciative that the OIR was willing to work with us to effectuate a quick and positive resolution to the Order,” said Tony Loughman, CEO at Southern Oak. He added, “Southern Oak prides itself on being a long-term player in the Florida insurance market and our policyholders need to know that we are financially sound and will be there to meet their needs.”
Southern Oak was one of only a few Florida insurance companies that actually increased its statutory surplus during 2009, thereby increasing the company’s ability to pay claims.
Southern Oak is a Jacksonville-based company providing homeowners insurance to more than 64,000 policyholders statewide.
To learn more about Southern Oak Insurance Company visit, www.southernoakins.com.