Florida Rebukes Insurer Over Transactions

By Paige St. John, Herald Tribune

A Florida property insurer that bought hurricane protection from its own Bermuda company has been ordered to attempt to recover the money, following a Herald-Tribune report about the transaction.

State regulators gave Homeowners Choice Property and Casualty 21 days to seek the return of more than $9 million it paid last year to Claddaugh, an offshore affiliate. Regulators could suspend Homeowners’ insurance license if it does not comply.

The insurer and Claddaugh are owned by Homeowners Choice Inc., a publicly traded holding company.

The self-insurance agreement was among $1.9 billion in self-dealing transactions by Florida property insurers detailed by the Herald-Tribune in stories appearing two weeks ago.