Will Texas Windstorm Insurer Remain After the Legislative Session?

By Stephanie K. Jones | March 1, 2013

  • March 2, 2013 at 8:19 pm
    Like or Dislike:
    Thumb up 0
    Thumb down 0

    $3.1 billion to cover claims … you have got to be kidding!

    Here’s the data I have on the TWIA funding structure:
    1. Money available from premium – $54 million
    2. CRTF – $182 million
    3. No Class 1 bonds — they are officially unmarketable
    4. Iffy Class 2 bonds — half have to be repaid by TWIA future revenues and they are getting striped by Ike claims.
    5. Class 3 bonds I think – $500 million.

    Depending on whether you think the Class 2 bonds can be sold (my opinion is that they are not sell-able as currently structured), TWIA has as little as about $800 million to at most $1.8 billion.

    A big hurricane (Galvestion 1900, Galveston 1915, Aubrey, Carla 1961, Rita as projected 2005, Indianola 1886, et. al.) would put a claims load on TWIA as high as $6.8 billion (per their own projections).

    Email me and I would welcome sharing the Public Information Requests and TPFA testimony that these statements are based on.

    Thanks, David
    David Crump, The Focused Moderate
    davcrump@yahoo.com



Add a Comment

Your email address will not be published. Required fields are marked *

*