Citizens Property Insurance Inc. successfully completed a $3.05 billion bond sale Tuesday, boosting company reserves for damage claim payment if a storm strikes, a company official said.
“We had a very successful pricing today,” said Terri Slack, CFO of the not-for-profit company. “We priced at a lower interest rate than anticipated.”
Lower interest rates mean Citizens will pay less money to service the debt over a 20-year span, Slack said.
The sale boosted Citizens’ reserves for paying claims to nearly $5 billion.
Slack said the bond revenue will be used to pay future claims “after Citizens’ available resources have been utilized.”
The sale boosted Citizens’ reserves for paying claims to nearly $5 billion.
Citizens and its financial advisor, Raymond James, began working on the bond sale earlier this year as a means to build reserves to pay for damage claims from future hurricanes.
Bear Stearns, Citigroup, Merrill Lynch and UBS were the senior managers of the sale.
Source: Citizens Property Insurance Inc.
Was this article valuable?
Here are more articles you may enjoy.
Florida And East Coast Will See Big Losses From More Cat 5 Storms, Researchers Say 
State Farm Sued Over Policies Backed by Distressed Insurer PHL 
How Three New CMS Policies Impact Workers’ Comp Claims 
RBC Denies Claims of ‘Boys Club’ Culture, Bias Against Women 
Want to stay up to date?
Get the latest insurance news
sent straight to your inbox.