Allstate Floridian gives property policies to Royal Palm
Allstate Floridian, a subsidiary of Allstate Corporation, was originally formed in 1996, in the political aftermath of Hurricane Andrew that struck Florida in 1992. It’s purpose was to be a stand-alone company that would help to isolate its parent corporation from severe catastrophe losses in Florida. After years of chaos in the Florida property market, the creation of a state-mandated and state-funded property market, and the insolvency of nearly a dozen property insurers (including others that left the state before insolvency), the Florida marketplace for property insurance was significantly desolate.
Allstate, looking to keep its profitable auto insurance business alive in Florida, resolved to solve this problem with the creation of an entirely separately-capitalized company. It would have its own ratings, its own funding, and most importantly, Allstate Floridian’s losses would stay with Allstate Floridian - ideally, not affecting the millions of other policyholders around the country.
Posted in: Management & Florida Life