Oct 10 Moody's Investors Service sees a 10.8
percent rise for homeowner policies and other rate hikes granted
Florida's Citizens Property Insurance Corp as a credit positive
for the storm-prone state's property insurer of last resort.
State-owned Citizens is rated by Moody's as A2 with a stable
outlook. It has campaigned for years to shift policies back to
Many large private insurers have exited Florida or cut back
exposure in the state, which has driven a big jump in market
share for Citizens. In 2005, Citizens covered 19 percent of the
Florida market. It now has a 27 percent share, with 1.4 million
"The increase is a credit positive step toward bringing
(Citizens) rates more in line with competitors, helping to
reduce the number of properties it insures and increasing
capital available to pay claims on remaining policies," Moody's
analysts said in written commentary. "Higher rates also reduce
(Citizens') need for additional assessments and bond issuance."