One other Florida insurer teeters on the point of insolvency
However earlier this month, scores agency Demotech confirmed in a launch that Southern Constancy was unable to safe reinsurance protection for the upcoming hurricane season, and subsequently withdrew its Monetary Stability Score for the insurer.
“After finishing our overview of first quarter 2022 monetary statements and contemplating that the Firm's reinsurance protection for the 2022 hurricane season just isn't full as of June 2, 2022, Demotech has withdrawn the Monetary Stability Score beforehand assigned to Southern Constancy Insurance coverage Firm,” Demotech mentioned in its launch.
Issues proceed to look grim for Southern Constancy, because the Florida Workplace of Insurance coverage Regulation (OIR) not too long ago issued an order which said that the insurer had entered negotiations to switch some or all its insurance policies to a different insurer as a part of a “winding-down” plan. Artemis.bm reported that Southern Constancy has about 78,000 insurance policies in power in Florida, in addition to one other 69,000 throughout Louisiana, South Carolina and Mississippi.
The OIR mentioned that it discovered Southern Constancy in “hazardous monetary situation,” and had ordered the insurer to current a remediation plan this week.
This isn't the primary time Southern Constancy was ordered to dump its insurance policies. In Could 2021, the insurer – together with Gulfstream Property and Casualty in addition to Common Insurance coverage Firm of North America – was ordered by the OIR to terminate greater than 50,000 dwelling insurance coverage insurance policies within the face of Florida’s troubled insurance coverage market. For its half, Southern Constancy was licensed to cancel 19,600 residential insurance policies.