St. Johns Insurance Company Approved by State for Homeowner Insurance Surplus Note Loan
July 31, 2006
St Johns Insurance Company receives approval for $20,000,000 loan from the State of Florida earmarked for new Homeowner capacity throughout the state. The $20,000,000 Note is the first such transaction resulting from the Senate Bill 1980 passed by the Florida State Legislature and signed by Governor Bush into law on May 16th. The "Insurance Capital Build-Up Incentive Program", administered by the State Board of Administration (SBA), was enacted as an incentive to Florida homeowner insurers, credit worthy and in good standing, able to demonstrate a stable business plan and ability to repay the State over a 20 year term. The insurer must commit to writing homeowner policies in Florida, and must match the state's loan with new capital investment. The qualified Company must then possess a minimum of $50,000,000 policy holders' surplus. "The program could
not have come at a better time for Florida homeowners and insurers," said James McCahill, President and CEO of St. Johns Insurance Company.
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