Government
Florida Sells Bonds to Backstop Its Homeowner’s Insurance Industry
- The $600 million bond sale is the first of its kind since 1993
- Insurers had to close after Hurricane Ian, deluge of lawsuits
A Florida state agency is selling municipal bonds to backstop the state’s homeowner’s insurance industry after a surge of claims and litigation drove some insurers to shutter.
The Florida Insurance Guaranty Association, which handles the claims of insolvent insurers, plans to borrow $600 million of bonds, according to preliminary offering documents. It is the first time in three decades the agency has tapped the municipal bond market to help support insurance claims.