Please see below and attached thanks to Jay Mussman. Scott P. Pence | Carlton Fields Board Certified in Construction Law by The Florida Bar Direct: 813.229.4322 | Fax: 813.229.4133 4221 W. Boy Scout Blvd., Ste. 1000 Tampa, Florida 33607-5780 bio<http://www.cfjblaw.com/spence/> | vcard<http://www.cfjblaw.com/FCWSite/Features/_Attorneys/vCard.aspx?attorney=7> | linkedin<http://www.linkedin.com/in/pencescott> From: Mussman, Jay D. <jmussman@daypitney.com> Sent: Wednesday, March 27, 2019 11:55 AM To: Pence, Scott <spence@carltonfields.com> Subject: Press Release: Hurricanes, water losses, AOB prompt reinsurance changes Please share Thank you Jay D. Mussman | Attorney at Law | Attorney Bio<http://www.daypitney.com/professionals/M/Mussman-Jay-D> [cid:image001.jpg@01D4E493.EDB22EB0]<http://www.daypitney.com/> Mizner Park Office Tower | 225 NE Mizner Boulevard, Suite 350 | Boca Raton FL 33432-4078 t (561) 537 4934 | f (561) 952 4267 | m (561) 862 8107 396 Alhambra Circle | North Tower, 14th Floor | Miami FL 33134 t (561) 537 4937 | f (305) 373 4099 jmussman@daypitney.com<mailto:jmussman@daypitney.com> | www.daypitney.com<http://www.daypitney.com> BOSTON<http://www.daypitney.com/about/offices/boston> | CONNECTICUT<http://www.daypitney.com/about/offices> | FLORIDA<http://www.daypitney.com/about/offices> | NEW JERSEY<http://www.daypitney.com/about/offices/parsippany> | NEW YORK<http://www.daypitney.com/about/offices/new-york> | WASHINGTON, DC<http://www.daypitney.com/about/offices/washington-dc> [Day Pitney LLP on Facebook] <http://facebook.com/DayPitney> [Follow Day Pitney LLP on Twitter] <http://www.twitter.com/daypitneyllp> [Day Pitney LLP on Linkedin] <https://www.linkedin.com/company/day-pitney-llp> From: Newsroom [mailto:Newsroom@citizensfla.com] Sent: Wednesday, March 27, 2019 11:51 AM Subject: Press Release: Hurricanes, water losses, AOB prompt reinsurance changes [[EXTERNAL EMAIL]] ________________________________ [cid:image003.jpg@01D4E493.5FE6E580] FOR IMMEDIATE RELEASE March 27, 2019 Contact: Michael Peltier (850) 513-3774 (850) 264-7702 (cell) Hurricanes, water losses, AOB prompt reinsurance changes MAITLAND, FL – Citizens Property Insurance Corporation will seek approximately $200 million in traditional reinsurance coverage for the 2019 hurricane season to protect surplus exposed to storm risk in areas located away from the coast. This follows mounting losses from hurricanes, nonweather water-loss claims, litigation and assignment of benefits abuse. For the first time since 2005, Citizens will purchase traditional reinsurance for its Personal Lines Account (PLA), which is comprised of 301,000 residential policies, most of which are not located along the coast. The reinsurance coverage will reduce Citizens’ PLA surplus exposure from 62 percent to 52 percent in the event of a 1-100 year storm. “After significant losses in the Personal Lines Account from Hurricanes Irma and Michael, along with nonweather losses and assignment of benefits, the Personal Lines Account surplus has decreased significantly and is now exposing much more of its surplus for a 1-100 year storm,” Jennifer Montero, Citizens Chief Financial Officer, told its Board of Governors on Wednesday. Since 2015, Citizens has incurred net operating losses in the PLA. Along with claims from Hurricanes Irma and Michael, these net operating losses are driven by nonweather-related water claims, assignment of benefits abuse and increased litigation. For 2018, the PLA experienced a net loss of $135.9 million. Traditional reinsurance coverage for the Personal Lines Account will be part of a $1.6 billion risk transfer package<https://www.citizensfla.com/documents/20702/9571058/20190327+04Aa+Layer+Charts.pdf/d4ef388d-cd54-42b1-bcde-4ddc6479da19> being assembled for the 2019 hurricane season, which begins June 1. Citizens plans to have $1.4 billion in coverage established for the Coastal Account. This includes $880 million in traditional reinsurance and catastrophe bonds purchased in 2017 and 2018, which remain in place for the 2019 season. ### ________________________________ This message contains PRIVILEGED AND CONFIDENTIAL INFORMATION intended solely for the use of the addressee(s) named above. Any disclosure, distribution, copying or use of the information by others is strictly prohibited. If you have received this message in error, please notify the sender by immediate reply and delete the original message. Thank you. ********************************************************************************************************** ________________________________