Fitch Affirms Debt Rtgs of Citizens Property Insurance Corp.Business Editors CHICAGO--(BUSINESS WIRE)--March 11, 2003 Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has affirmed the 'A' senior debt rating of Citizens Property Insurance Corporation's (Citizens) high-risk account senior secured pre-event note issue (Series 1997A). Fitch has also affirmed the 'AAA' rating of Citizens' high-risk account senior secured pre-event note issue (Series 1999A) that is insured by MBIA MBIA Montana Building Industry Association MBIA Municipal Bond Insurance Association MBIA Michigan Boating Industries Association MBIA Municipal Bond Investors Assurance MBIA Massachusetts Brain Injury Association MBIA Maryland Business Incubation Association Insurance Corporation with an unconditional guarantee of principal and interest. The Rating Outlook is Stable. Citizens is a not-for-profit, tax-exempt entity that provides full wind, hurricane, and hail coverage to residential and commercial properties in Florida that are unable to obtain insurance in the voluntary, or standard, insurance market. Citizens was created on May 10, 2002 when Florida Governor Jeb Bush John Ellis "Jeb" Bush (born February 11, 1953) is an American politician, and was the 43rd Governor of Florida as well as the first Republican to be re-elected to that office. He is a prominent member of the Bush family: the younger brother of current President George W. signed into law a bill that combined the Florida Windstorm wind·storm n. A storm with high winds or violent gusts but little or no rain. windstorm A storm with high winds or violent gusts but little or no rain. Underwriting Association (FWUA FWUA Florida Windstorm Underwriting Association ) and the Florida Residential Property and Casualty Joint Underwriting Association (JUA JUA Joint Underwriting Association (insurance) JUA Journal of Underwater Acoustics JUA Jamaat-ul-Ansar ) into a single entity, Citizens, effective on August 1, 2002. Citizens assumed the debt of FWUA with obligations passing entirely and unchanged to Citizens. In addition, the claims paying resources and assessments of the former FWUA and JUA are preserved by account, with a separate high-risk account established and maintained for policies in former FWUA eligible areas, and two other separate accounts for former JUA policies, one for personal lines and one for commercial lines. The strong rating reflects Citizens' sufficient high-risk account claims paying resources, state authorized power to assess its participating insurers as a pass-through vehicle to property insurance policyholders in Florida following a large storm event, the high credit quality of that participating company base, and conservative and liquid investment portfolio. Weighted against these positives are the nature of exposure to windstorm catastrophes, a high level of reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. exposure in the Florida Hurricane Catastrophe Fund (rated 'A+' by Fitch), and a small, but growing, amount of surplus. Entity/Issue/Type Action Rating/Outlook Citizens Property Insurance Corporation - High-Risk Account --Senior notes Affirmed 'A'/Stable. --Senior notes guaranteed Affirmed 'AAA'/Stable. |
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