Lighthouse in Rehab in Louisiana But Could Trigger Another Assessment in Florida

As a result of Lighthouse Property Insurance coverage Co. is domiciled in Louisiana, Florida’s insurance coverage regulators most likely gained’t put the troubled firm by the receivership and liquidation course of within the Sunshine State.

However that doesn’t imply the Florida Insurance coverage Warranty Affiliation will be capable of keep away from putting an evaluation on different carriers to assist pay excellent Florida claims for Lighthouse. For now, FIGA is ready on Louisiana regulators to liquidate the corporate and its Louisiana-based sister firms, and it’s too quickly to understand how a lot an evaluation may be wanted, mentioned Corey Neal, govt director of FIGA.

“There’s no good indication of what liabilities FIGA may need,” Neal mentioned Wednesday. “We’re working by all of that.”

The evaluation for Florida insurers will probably be small. Lighthouse held simply 13,200 insurance policies in drive within the state on the finish of 2021, the Florida Workplace of Insurance coverage Regulation has reported. However a Lighthouse surcharge may very well be the second or third this 12 months for Florida insurers.

After the much-larger St. Johns Insurance coverage Co., with 147,000 insurance policies, was deemed bancrupt in February, FIGA authorised a 1.3% evaluation on premiums, which can generate about $190 million, a price that shall be handed on to Florida policyholders. That adopted a 0.7% surcharge on member insurers that started in January, wanted to assist cowl the legacy prices of failed property insurers Gulfstream Insurance coverage and American Capital.

Avatar Property Insurance coverage, with about 38,000 insurance policies in drive, additionally was deemed bancrupt this 12 months, nevertheless it’s unsure if an evaluation shall be wanted for that firm’s claims.

Insurance coverage officers in Louisiana and Florida mentioned that the physique blow for Lighthouse seems to have been Hurricane Ida, which hit Louisiana in 2021 after three different storms had battered the state the 12 months earlier than. The quantity and severity of the claims brought about the insurer to burn by its reinsurance protection, leaving it with little surplus.

In 2020, Lighthouse Property Insurance coverage Co. confirmed $204 million in belongings, $160 million in liabilities, and $44 million in capital and surplus, based on the Nationwide Affiliation of Insurance coverage Commissioners. However the service reported three straight years of internet losses, together with nearly $72 million in 2020.

The Louisiana court docket order putting Lighthouse and its sister firms, together with Louisiana-based Lighthouse Excalibur Insurance coverage Co., into rehabilitation notes {that a} listening to shall be held April 25 at 9:30 a.m. on the district court docket in East Baton Rouge Parish.

Subjects
Florida
Louisiana