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<p class="MsoNormal"><span style="color:#1F497D">Please see below and attached thanks to Jay Mussman.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<b><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:#1F497D">Scott P. Pence | Carlton Fields</span></b><b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D"><o:p></o:p></span></b></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D">Board Certified in Construction Law by The Florida Bar<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D">Direct: 813.229.4322 | Fax: 813.229.4133<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D">4221 W. Boy Scout Blvd., Ste. 1000<o:p></o:p></span></p>
<p class="MsoNormal" style="text-autospace:none"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#1F497D">Tampa, Florida 33607-5780
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:black"><a href="http://www.cfjblaw.com/spence/"><span style="color:blue">bio</span></a> |
<a href="http://www.cfjblaw.com/FCWSite/Features/_Attorneys/vCard.aspx?attorney=7">
<span style="color:blue">vcard</span></a> | <a href="http://www.linkedin.com/in/pencescott">
<span style="color:blue">linkedin</span></a></span><span style="color:#1F497D"><o:p></o:p></span></p>
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<p class="MsoNormal"><b>From:</b> Mussman, Jay D. <jmussman@daypitney.com> <br>
<b>Sent:</b> Wednesday, March 27, 2019 11:55 AM<br>
<b>To:</b> Pence, Scott <spence@carltonfields.com><br>
<b>Subject:</b> Press Release: Hurricanes, water losses, AOB prompt reinsurance changes<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">Please share</span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">Thank you</span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="color:#1F497D"> </span><o:p></o:p></p>
<p class="MsoNormal"><span style="font-size:12.5pt;color:#003366">Jay D. Mussman | Attorney at Law |
</span><a href="http://www.daypitney.com/professionals/M/Mussman-Jay-D"><span style="font-size:12.5pt;color:blue">Attorney Bio</span></a><span style="font-size:12.5pt;color:#003366">
<br>
</span><span style="font-size:6.0pt;color:#1F497D"><br>
</span><a href="http://www.daypitney.com/"><span style="font-size:6.0pt;color:blue;text-decoration:none"><img border="0" width="216" height="26" style="width:2.25in;height:.2708in" id="_x0000_i1037" src="cid:image001.jpg@01D4E493.EDB22EB0" alt="cid:image001.jpg@01D4E493.EDB22EB0"></span></a><span style="font-size:6.0pt;color:#1F497D"><br>
<br>
</span><span style="color:#1F497D">Mizner Park Office Tower | 225 NE Mizner Boulevard, Suite 350 | Boca Raton FL 33432-4078<br>
t (561) 537 4934 | f (561) 952 4267 | m (561) 862 8107<br>
<br>
396 Alhambra Circle | North Tower, 14th Floor | Miami FL 33134<br>
t (561) 537 4937 | f (305) 373 4099 <br>
<br>
</span><a href="mailto:jmussman@daypitney.com"><span style="color:#003366">jmussman@daypitney.com</span></a><span style="color:#1F497D"> |
</span><a href="http://www.daypitney.com"><span style="color:#003366">www.daypitney.com</span></a><span style="color:#1F497D"><br>
</span><a href="http://www.daypitney.com/about/offices/boston"><span style="color:black;text-decoration:none">BOSTON</span></a><span style="color:#1F497D"> | </span><a href="http://www.daypitney.com/about/offices"><span style="color:black;text-decoration:none">CONNECTICUT</span></a><span style="color:#1F497D">
| </span><a href="http://www.daypitney.com/about/offices"><span style="color:black;text-decoration:none">FLORIDA</span></a><span style="color:#1F497D"> | </span><a href="http://www.daypitney.com/about/offices/parsippany"><span style="color:black;text-decoration:none">NEW
JERSEY</span></a><span style="color:#1F497D"> | </span><a href="http://www.daypitney.com/about/offices/new-york"><span style="color:black;text-decoration:none">NEW YORK</span></a><span style="color:#1F497D"> | </span><a href="http://www.daypitney.com/about/offices/washington-dc"><span style="color:black;text-decoration:none">WASHINGTON,
DC</span></a><span style="color:#1F497D"> </span><a href="http://facebook.com/DayPitney"><span style="color:blue;text-decoration:none"><img border="0" width="20" height="20" style="width:.2083in;height:.2083in" id="Picture_x0020_2" src="cid:image002.jpg@01D4E493.EDB22EB0" alt="Day Pitney LLP on Facebook"></span></a><span style="color:#1F497D">
</span><a href="http://www.twitter.com/daypitneyllp"><span style="color:blue;text-decoration:none"><img border="0" width="25" height="20" style="width:.2604in;height:.2083in" id="Picture_x0020_3" src="cid:image004.png@01D4E493.EDB22EB0" alt="Follow Day Pitney LLP on Twitter"></span></a><span style="color:#1F497D"> </span><a href="https://www.linkedin.com/company/day-pitney-llp"><span style="color:blue;text-decoration:none"><img border="0" width="20" height="20" style="width:.2083in;height:.2083in" id="Picture_x0020_4" src="cid:image005.jpg@01D4E493.EDB22EB0" alt="Day Pitney LLP on Linkedin"></span></a><o:p></o:p></p>
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<p class="MsoNormal" style="margin-left:.5in"><b><span style="font-size:10.0pt;font-family:"Tahoma",sans-serif">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma",sans-serif"> Newsroom [<a href="mailto:Newsroom@citizensfla.com">mailto:Newsroom@citizensfla.com</a>]
<br>
<b>Sent:</b> Wednesday, March 27, 2019 11:51 AM<br>
<b>Subject:</b> Press Release: Hurricanes, water losses, AOB prompt reinsurance changes</span><o:p></o:p></p>
</div>
</div>
<p class="MsoNormal" style="margin-left:.5in"> <o:p></o:p></p>
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<p class="MsoNormal" style="margin-left:.5in"><strong><span style="font-size:9.0pt;font-family:"Helvetica",sans-serif;color:black">[[EXTERNAL EMAIL]]</span></strong><o:p></o:p></p>
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<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Arial",sans-serif"> </span><o:p></o:p></p>
<p class="MsoNormal" align="center" style="margin-left:.5in;text-align:center"><span style="font-family:"Arial",sans-serif"><img border="0" width="802" height="133" style="width:8.3541in;height:1.3854in" id="Picture_x0020_1" src="cid:image003.jpg@01D4E493.5FE6E580" alt="cid:image003.jpg@01D4E493.5FE6E580"></span><o:p></o:p></p>
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<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Arial",sans-serif">FOR IMMEDIATE RELEASE</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Arial",sans-serif">March 27, 2019</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Arial",sans-serif"> </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Arial",sans-serif">Contact: Michael Peltier</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Arial",sans-serif">(850) 513-3774</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Arial",sans-serif">(850) 264-7702 (cell)</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Arial",sans-serif"> </span><o:p></o:p></p>
<p class="MsoNormal" align="center" style="margin-left:.5in;text-align:center;background:white">
<b><span style="font-family:"Arial",sans-serif;color:black">Hurricanes, water losses, AOB prompt reinsurance changes</span></b><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in;background:white"><b><span style="font-family:"Arial",sans-serif;color:black"> </span></b><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Arial",sans-serif">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.
</span><o:p></o:p></p>
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<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Arial",sans-serif">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.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Arial",sans-serif"> </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Arial",sans-serif">“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.
</span><o:p></o:p></p>
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<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Arial",sans-serif">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.</span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Arial",sans-serif"> </span><o:p></o:p></p>
<p class="MsoNormal" style="margin-left:.5in"><span style="font-family:"Arial",sans-serif">Traditional reinsurance coverage for the Personal Lines Account will be part of
<span class="MsoHyperlink"><a href="https://www.citizensfla.com/documents/20702/9571058/20190327+04Aa+Layer+Charts.pdf/d4ef388d-cd54-42b1-bcde-4ddc6479da19">a $1.6 billion risk transfer package</a></span> 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.</span><o:p></o:p></p>
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