NEW ORLEANS. Jul. 23, 2012 – The CEO of Louisiana Citizens Property Insurance Corporation reassured policyholders that the company has more than adequate cash reserves to operate smoothly even after the payment of today’s $104 million class action judgment. “LA Citizens is a viable organization with sufficient operating funds to pay claims for the foreseeable future. We have a balance of $100-110 million in cash reserves,” said LA Citizens Chief Executive Officer Richard A. Robertson.

Robertson did clarify, however, that a huge lump payment to policyholders from a major storm in 2012 could put enormous pressure on the company. “Of course, a major Katrina-type storm could cause a problem if it happens this year before we have time to replenish our cash reserves, causing the possibility of an assessment that would affect the entire state,” he said.

Since 2008, LA Citizens has instituted management systems and a structure that has strengthened the entire organization. “This judgment reflects the aftermath of Katrina and Rita before the company was restructured to raise accountability standards. In 2009, Hurricane Gustav generated more than 50,000 claims. There are fewer than 100 claims that remain open. There were no class action lawsuits,” he said.



More about Louisiana Citizens Property Insurance Corporation

Louisiana Citizens Property Insurance Corporation is a non-profit insurance corporation created to provide insurance products for residential and commercial property applicants who are in good faith entitled, but unable, to procure insurance through the voluntary insurance marketplace.