AKIC Gets Approval on Citizens Depopulation

American Keystone Insurance Company ("AKIC") has received approval from the Florida Office of Insurance Regulation and Citizens Property Insurance Corporation to assume as many as 718 policies from the Commercial Residential Account.

On June 25, 2008 AKIC assumed 446 policies from Citizens. AKIC plans to assume an additional 272 policies from Citizens by the end of 2008. These assumptions are substantial as premiums per policy average over $20,000 each. Reinsurance protection for the transaction was secured by King's Bay Reinsurance Intermediaries, Inc. of Ponte Vedra Beach, Fla.

The approval to assume Commercial Residential policies, such as condominium association property, from Citizens is the first such approval granted by the OIR and Citizens. "We are pleased to have successfully concluded this transaction with the OIR and Citizens, which is a major step in the full development of our company as a private sector solution to the growth and recovery of the property insurance market in Florida", said Bruce Howson, president of AKIC.

Michael Cratem, senior vice president underwriting, added, "This assumption squarely puts AKIC into the Commercial Property business in Florida."

Michael Norman, senior vice president, commented, "We look forward to adding voluntary business to our mix and as a matter of fact, we wrote our first voluntary piece of condominium association business yesterday."

AKIC is in the process of contracting with its current personal lines agencies to expand into commercial property and is seeking new commercial agencies for voluntary business in selected areas of the state.