Replies to post #124328 on Value Microcaps Motherboard

[nelson1234]

r59, since this summer the Florida insurers have stated that the second half of the year will be hurt by increased reisurrance rates and wind mitigation credits.

They also have said that state mandated rate increases will begin to help them in the first half of 2010 - I think those rate increases are fairly big...maybe 17%.

best.

[Knowledge is King]

re UVE: reinsurance rates were definitely up this year



and UVE rates are not particularly competitive in a lot of areas of the state. Put those factors together, mix in ballooning expenses, and you have a recipe for crumbling results.


I don't doubt that the approved rate increases will help in 2010, but I wouldn't be surprised to see UVE start losing policies, net, as people seek cheaper alternatives (which get more abundant with each passing low-impact hurricane season...3 or 4 in a row now).