Mercury General has announced that it is beginning the process of leaving the Florida homeowners insurance market, citing it’s $19 million in losses in the fourth quarter of 2010 as the driving factor.
According to the company, it will be sending the mandatory 180-day advanced notice of it’s “intent not to renew” policies for 8,000 Florida homeowners beginning in March. By the second half of 2012, it expects to be fully withdrawn from the “Sunshine State.”
Spokespeople for Mercury General say that the $19 million loss includes $6 million in reserves set aside for future claims. The company blames many of the losses on sinkholes, which state officials and other insurance companies have also referred to as a major source of insurance costs in Florida.