Condo Apartment Insurance

Castle Key Insurance Seeks To Boost Florida Condo Rates

Condo Apartment Insurance
Source: TFP File Photo

Castle Key Insurance Companies proposed an overall 53.5 percent rate increase for Florida condominium residents who have policies with Castle Key Indemnity Co.

The filing, reported Friday by the Insurance Journal, would take effect May 14. The Florida Office of Insurance Regulation will determine whether to approve the increase.

The Insurance Journal also reported in January that Castle Key, an Allstate subsidiary, planned to drop 33,000 condominium policies.

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The AM Best rating agency this month raised concerns about the Castle Key companies.

AM Best said it had “placed under review with negative implications” the financial-strength rating and the long-term issuer credit rating of the Castle Key group of companies.

AM Best said in a news release that it made the move “due to a material deterioration in its (Castle Key’s) surplus position as a result of challenging personal property insurance conditions in Florida, including higher loss severity, catastrophe-related losses and the increased cost of reinsurance.

Castle Key management has taken significant corrective underwriting actions and is actively engaged in discussions with state regulators on appropriate capitalization levels.

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Given the uncertainty regarding the placement of its 2023 reinsurance program and future capital position, the ratings will remain under review until AM Best can fully analyze the impact of these actions.”

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