Florida Peninsula

Please call  Lee from Calles Financial and Chaisteli Insurance  at 954-270-7966, Your Insurance Consultant  about Home Insurance, Auto, Flood, Private Flood, Car, Life Insurance & Financial Products, Business  & Commercial Policies, and Group Products for business owners to give Employees benefits at no cost to the employer.

If your carrier is experiencing 100% or more from claims last year, then expect huge rate hikes this year. Not counting Reinsurance hikes this summer, rates could jump 30-40% for the next 2 years!!! Do you need to shop your Insurance, Home, Auto, Life or Long Term Care, I can help you understand and shop rates, premiums, coverages or the lack thereof.

The long-awaited Demotech rating decisions for Florida domestic carriers are in, with many carriers having satisfied necessary steps to avoid ratings downgrades by the financial analysis firm.

After affirming a slew of companies in mid-March, Demotech announced April 2 that the remaining carriers that had yet to be decided were affirmed (see chart) because of enhancements to their business models

On March 30, Demotech affirmed the ‘A’ financial stability ratings of the following companies: Avatar Property & Casualty Insurance Co., Centauri Specialty Insurance Co., Cypress Property & Casualty, Safepoint Insurance Co., and Tower Hill Signature Insurance Co. Also affirmed were Tower Hill Select Insurance Co. and Omega Insurance Co., after their merger into Tower Hill Signature was approved by the Florida Office of Insurance Regulation on March 25.

Since Demotech sounded the alarm in January that as many as 18 Florida carriers could see downgrades due to deteriorating insurance market conditions in the state, the ratings firm said several actions have been taken: one company was downgraded, one company was acquired by a carrier with an FSR of A; five companies were merged into carriers with FSRs of A, and an additional nine companies enhanced their business models.

The specific actions include:

  • Anchor P&C Assigned an FSR of M – ceased operations
  • Anchor Specialty FSR of A – Acquired by insurer with FSR of A
  • Omega FSR of A – Merged into an insurer with FSR of A
  • Tower Hill Select FSR of A – Merged into an insurer with FSR of A
  • Cypress TX FSR of A – Merged into an insurer with FSR of A
  • Prepared FSR of A – Merged into an insurer with FSR of A

Demotech said other carriers “aggressively enhanced the capability of their business models to respond to the anticipated continuation of jurisdictional and weather-related challenges, the substantial increase in reinsurance costs during 2019, the likely increase in the cost of reinsurance in 2020, and the cost of the Rapid Cash Buildup Program of the Florida Hurricane Catastrophe Fund.”

Those companies include:

  • Centauri Specialty FSR of A, Business model enhanced
  • Centauri National FSR of A, Business model enhanced
  • Safepoint FSR of A, Business model enhanced
  • Gulfstream P&C FSR of A, Business model enhanced
  • Avatar P&C FSR of A, Business model enhanced
  • Capitol Preferred FSR of A, Business model enhanced
  • Security First FSR of A, Business model enhanced
  • Tower Hill Signature FSR of A, Business model enhanced
  • Cypress P&C FSR of A, Business model enhanced

“Our view of Florida’s current residential property insurance marketplace is that the numerous financial and market based criteria that affect Florida residential property insurance have never been more difficult for carriers to navigate since we first rated Florida focused carriers in 1996. The marketplace as well as carrier-specific financial metrics drove the need to consider downgrades,” Demotech said in an April 2 report on its ratings decisions.

The ratings firm said it asked certain Florida insurers to provide projections of their year-end 2019 financials immediately after it finished reviewing third quarter results in November last year. At that time, it also asked those insurers to answer two questions based on the following Florida-specific circumstances: 1. the lingering impact of the judicial activism of the past; 2. the litany of named weather events; 3. increases in the cost of reinsurance, and 4. the specter of additional increases in the cost of reinsurance in 2020.

The questions posed to companies were:

  • Will you continue to be focused on residential property insurance in Florida?
  • If so, based upon the conditions in the marketplace and the operating results that will emanate from those conditions, how will you revise your business model, or otherwise position your company, to combat more of those same conditions in the future?

Demotech said carrier responses used to make ratings decisions included documentation of the company’s jurisdictional diversification, voluntary runoff, marketing existing books of business to other carriers, merging affiliates, or securing assistance.

“The management teams of these carriers have fought the conditions in the most difficult operating jurisdiction in the country to a draw,” the Demotech statement says. “They have addressed the needs of policyholders, investigated and settled claims, paid their employees, producers, and reinsurers, met with us, negotiated with reinsurers for their 2020 programs, and filed timely financial statements in an orderly manner.”

Demotech said it reviewed public and private financial information of companies, including:

  • Managing general agency contract and financial statements, when necessary
  • Holding company financial statements, when necessary
  • Actuarial reports and documents containing appreciably more detail than the actuarial opinion letter, which is a public document
  • Independent audits
  • Anticipated operating results in the form of pro forma financials in a prescribed format
  • Claims adjusting details and reports
  • Litigation services
  • Asset and investment management contracts
  • Disaster recovery plan
  • Catastrophe response plans
  • Catastrophe modelling output
  • A preliminary review of horizontal and vertical reinsurance programs
  • A final review of horizontal and vertical reinsurance programs
  • Review of rate level indications
  • Personal financial statements of key financial supporters.
  • On-site meetings with reinsurers
  • On-site meetings with companies\

Please enjoy the full article below!!



Please call  Lee from Calles Financial and Chaisteli Insurance  at 954-270-7966, Your Insurance Consultant  about Home Insurance, Auto, Flood, Private Flood, Car, Life Insurance & Financial Products, Business  & Commercial Policies, and Group Products for business owners to give Employees benefits at no cost to the employer.

34 Florida carriers have 100% or more claims to revenue last year in 2019. Some are as high as 120% of revenue. AOB has caused this problem with no end in sight for rate hikes. Carriers will start to non renew their books of business, older homes, homes with water damage claims. This will hit the housing market & 1st time Homebuyers chances to buy homes will be even more less likely. There was supposed to be a special session about just Insurance in Tallassee in mId March, but now w/ the COVID-19 break out, that session may never happen this year. Everyone needs to understand their Home Insurance policies, coverages or lack their of.

If you want this full e-mail, please contact me at lee.gorodetsky@gmail.com

Here is the beginning of 12 pages of information and charts & graphs,


Demotech set to reveal downgrades as
full-year results show Florida pain
Demotech has affirmed the majority of the 46 Florida homeowners specialists it rates with the
remaining carriers awaiting their fate as the agency completes its review of 2019 financials
that reveal widespread operating losses and actions to shore up balance sheets, The Insurer
can Demotech is the only firm that rates most of the Florida specialists and its financial strength
ratings are critical to them because lenders typically require insurance policies bought by
homeowners in the state to be from A rated carriers.
As previously reported, in January this year the ratings agency warned of a potential slew of
downgrades in response to a range of macroeconomic and unique state specific issues faced
by Florida-focused carriers.
And analysis by this publication reveals 36 out of 46 companies we compiled data on from
2019 statutory annual statements fell to an operating loss in 2019. A total of 34 of the carriers
reported combined ratios of over 100, with 14 at over 120 percent.reveal.



Please call Lee from Acentria Insurance at 954-270-7966 for free quotes on Home Insurance, Auto, Flood, private Flood, Car, Business & Commercial Insurance as well as Life , Health and all group benefits large & small

Insurers, reinsurers and ILS investors could face significant losses from Hurricane Michael, a major Category 4 storm that began its assault on the Florida Panhandle Wednesday, according to a briefing from A.M. Best.

Best said although Florida’s insurance market-share leaders possess strong levels of risk-adjusted capitalization that should provide a buffer against Hurricane Michael losses, there will still be an impact for insurers writing in the state, according to a new A.M. Best briefing.

Furthermore, while nearly all A.M. Best-rated Florida property companies have substantial property catastrophe premium, some have strategically limited their exposures in the panhandle, and therefore are not significantly exposed to this hurricane.

“However, the question of how the state’s relatively new, Florida-specific insurers might withstand the impact of substantial insurable losses caused by Hurricane Michael remains,” Best noted. “In addition, depending on the storm’s intensity after making landfall, the potential for insurable losses could put some pressure on reinsurers. The actual impact of the hurricane will depend on a number of yet undetermined factors, but A.M. Best believes that most of the affected rated carriers have sufficient capital and appropriate reinsurance programs to withstand this event effectively.”

Please enjoy the full article below;

Florida homeowners’ insurers Edison Insurance Co. is being relaunched with new management and coverage options almost five years after its business was taken over by another insurer.

The company said it plans to begin offering homeowners’ and condominium unit owner policies in Florida on November 3, 2014.

Edison, originally headquartered in St. Petersburg, Florida, was purchased by Boca Raton-based Florida Peninsula Insurance Co. (FPI) in January of 2010.  Subsequently, all Edison policies were transferred to Florida Peninsula.

Under the new management plan, instead of offering only standard coverage and one premium, Edison will display a variety of coverage each time a quote is requested.  The customer and agent can then select from one of the coverage options and further customize the quote before binding.

The company said it will now share the same managing general agency (MGA) and management team as Florida Peninsula Insurance Co. where Paul Adkins is chairman; Roger Desjadon, CEO; and Francis Lattanzio, CFO.

The new Edison said it has $20 million in capital and maintains a reinsurance program backed by reinsurer rated “A” or better. Edison has received a Financial Stability Rating of A-Exceptional from Demotech.

Edison said it does not plan to participate in the Citizens takeout program. Instead, the company will market its homeowners and condominium unit owners insurance through professional insurance agents.

We will represent this new company again so please call L & S Insurance at 1-888-244-7400 for quotes on Home Insurance, Flood, Auto, Business & Commercial, & Life & Financial products as well.





4 larger carriers have come together to take out policies from Citizens Insurance. Florida Peninsula, Homeowner’s Choice,Southern Fidelity and Southern Oak will all take 150K policies in 2013. On top of this citizens is looking to depopulate another 500K policies over the following 2 years with differant carriers and a meeting today will set all of this in motion. The new plan will use hundreds of millions of dollars to remove all of these policies, but the risk of Hurricane claims  will be reduced and the State of Florida will be in a better position because of it. The problem  that still exists is when will Home Insurance prices come down as the Real estate market cannot handle these  prices and still sell homes. When Insurance and taxes are almost as high as the mortgage payment it is hard to qualify for a new mortgage?? Please call L & S Insurance for all of your Home, Auto, Flood, Business & Commercial and Life Insurance quotes as well at 1-888-244-7400.Please read the full story below;


The State’s 7th largest Home Insurance Company will be raising rates between 3-20%   soon! The hearings with the Florida OIR are ongoing now and will most likely be approved as all carriers are doing the same. This is a trend that started late last year and hit a peak in mid year 2010  and now is still an ongoing process for all carriers at some point. Even Citizens Insurance will increase 1/1/11 significantly and how will the people of Florida afford it?? At L & S, we will help you shop to all available carriers and compare all coverage’s to determine what you need and can afford. Please contact  us for a quote on this blog page or call. Please read the article on The Florida Peninsula rate hike soon to come.