Florida’s Chief Financial Officer (CFO), Jimmy Patronis, has lauded the recent developments in the state’s insurance market, particularly with the approval of the acquisition of Trusted Resource Underwriters Exchange (TRUE).
The move is expected to not only bolster the existing company’s presence in Florida but also ignite a surge in healthy competition within the homeowners’ insurance sector.
Patronis expressed his optimism, stating, “As your CFO, it’s good to see Florida’s insurance market moving in the right direction. With this acquisition, we are seeing a huge investment in Florida’s insurance market, that will undoubtedly create healthy competition for anyone who is looking to acquire homeowners’ insurance.”
“Thank you to OIR and Insurance Commissioner Michael Yaworsky for the excellent work that is being done to ensure that Florida’s insurance market is stable and competitive for our consumers.”
The acquisition, approved by the Florida Office of Insurance Regulation (OIR), translates into a substantial injection of more than $1.25 billion in capital into the state’s property and casualty insurance market.
Insurance Commissioner Michael Yaworsky echoed Patronis’ sentiments, highlighting the positive impact of insurance companies expanding their business in Florida following recent legislative reforms.
Yaworsky emphasised, “This investment will help promote more competition in the market for policyholders looking for homeowners’ insurance; OIR looks forward to continuing our efforts in attracting more insurance-related companies, jobs, and capital to the Florida insurance market.”
The announcement comes on the heels of extensive legislative reforms aimed at fostering market stabilisation. These reforms have not only attracted investments but have opened up additional opportunities for companies to sell insurance in Florida.
Private investment firm Gallatin Point Capital and insurer, American Family Insurance Group, have successfully closed a new partnership whereby funds managed by Gallatin Point will acquire a majority stake in the attorney-in-fact for TRUE.
TRUE is a reciprocal insurer established by American Family in 2020 to serve homeowners in storm-prone regions of Florida, and other parts of the country.
