Reply #16: Sector Snap: Insurers/Reinsurers

[citizen snips]

NEW YORK (AP) -- The legislation Florida lawmakers passed Monday seeking lower homeowners insurance rates may hurt reinsurers more than insurers.

The Florida State Legislature approved a 100-page bill Monday cutting insurance rates for customers of state-run Citizens Property Insurance Corp., the biggest property insurer in the state.

Following record hurricane damage in 2005, insurers raised property insurance premiums in the Gulf Coast, and some left the market. Florida legislators hope insurers will be forced to lower rates to compete with a state-run company selling cheaper insurance.

Shares of insurers have fallen in anticipation of this legislation -- with Allstate Corp. down 3.5 percent, Safeco Corp. down 4.9 percent and St. Paul Travelers Cos. down 3.4 percent in the past four weeks.

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http://biz.yahoo.com/ap/070123/sector_snap_insurers_reinsurers.html?.v=1