Is America a racist nation?

[Farfromgeneva]

"This is because the U.S. schools had a very specific purpose: They helped the government acquire Indian lands. Beginning with Carlisle in Pennsylvania in 1879 and ending with the Sherman Institute in California in 1903, the U.S. government operated 25 off-reservation boarding schools. (Some religious denominations also opened their own mission schools.) At the same time, a massive dispossession took place in the form of the General Allotment Act, which authorized the president to survey and divide Indian lands. Boarding schools, designed to reeducate Indian youth who would no longer have a tribal homeland, went hand in hand with this genocidal policy."

https://www.washingtonpost.com/outlook/ ... ed-states/

https://en.wikipedia.org/wiki/Dawes_Act

'The Dawes Act of 1887 (also known as the General Allotment Act or the Dawes Severalty Act of 1887; named after Senator Henry L. Dawes of Massachusetts)[1][2] regulated land rights on tribal territories within the United States. It authorized the President of the United States to subdivide Native American tribal communal landholdings into allotments for Native American heads of families and individuals. This would convert traditional systems of land tenure into a government-imposed system of private property by forcing Native Americans to "assume a capitalist and proprietary relationship with property" that did not previously exist in their cultures.[3] The act allowed tribes the option to sell the lands that remained after allotment to the federal government. Before private property could be dispensed, the government had to determine "which Indians were eligible" for allotments, which propelled an "official search for a federal definition of Indian-ness."[4]'

Dawes Act from the Dawes Roll - very explicitly why Warren is a liar and her doubling down on being Cherokee is gross.

Warren had no native ancestry?

She got an ancestry.com type test and it was like 1/1064th. But not the Us, the cherokees have state flat out of your family isn’t listed on the Dawes roll you aren’t cherokee. Not just a white Anglo convention. That’s one thing I can’t let go with her. Even before the doubling down which make her look petty, craven and stupid. It’s that parochial Mass attitude where she won’t even listen to the people she claims as her own and does what she wants. She doesn’t even represent natives or understand differences in people if she thinks DNA represents a race or culture. Should’ve been a telling signal of her honesty.

https://www.google.com/amp/s/news.yahoo ... 15437.html



The Dawes Commission went to the individual tribes to obtain the membership lists, but it took a series of attempts to gain anything near to an accurate count. In 1898, Congress passed the Curtis Act, which provided that a new roll would be taken and supersede all previous rolls. Difficulties in enumerating the population included the forced migrations of the period as well as the American Civil War.[5][6] Additionally, non-Native census takers introduced the idea of Blood Quantum, a concept previously foreign to the tribal communities.[7] Those recording this percentage of ancestry wrote down an estimation, based on physical appearance and personal opinion if the individual was present.[5][6]

Tribal citizens were listed under several categories:

Citizen by Blood
New Born Citizen by Blood
Minor Citizens by Blood
Citizen by Marriage
Freedmen (persons formerly enslaved by Native Americans and/or adopted by the Cherokee tribe)
New Born Freedmen
Minor Freedmen
Delaware Indians (those adopted by the Cherokee tribe were enrolled as a separate group within the Cherokee)
More than 250,000 people applied for membership, and the Dawes Commission enrolled just over 100,000. Most were rejected because they were non-Natives who showed up demanding land, but could not prove any connection to an existing Native community, such as naming living relatives or speaking the Native language. Overrun with prospective claimants, the commission was overwhelmed, and had to institute guidelines:

It rejected the unconscionable claim that a white person once admitted into the tribe by marriage to an Indian could confer citizenship upon any white person whom he might afterwards marry and upon his white descendants. It also uncovered a great mass of nauseous evidence, and rejected a large number of claims upon the ground they had been advanced through perjury and forgery.[2]
An act of Congress on April 26, 1906, closed the rolls on March 5, 1907. An additional 312 persons were enrolled under an act approved August 1, 1914.

While some initially refused to be enumerated, almost all were later arrested and enrolled against their will; enrollment was not a matter of "choice."[4][8] Refusing to be enumerated, and even fleeing, would mean warrants being issued for the person's arrest; they could then be treated brutally and imprisoned in the process of being enrolled by force.[4][8] Still, due to understandable distrust of the government, there were those who tried to avoid ennumeration. Notable among those who resisted were Muscogee Chitto Harjo (Crazy Snake), and Cherokee Redbird Smith. But both Harjo and Smith were eventually coerced into enrolling. According to Cherokee professor Steve Russell, some Natives hiding in the Cookson Hills never did enroll,[9] but some of them were later arrested and forcibly enrolled, while others were enrolled on their behalf by people in their communities. Additionally all individuals on the Census Roll of 1896 were enrolled without notification to the parties involved.[10] The only real choice to avoid enumeration entirely meant completely leaving one's community and assimilating.[4][8] Since that period, the tribes have relied on the Dawes Rolls as part of the membership qualification process, using them as records of citizens at a particular time, and requiring new members to document direct descent from a person or persons on these rolls.[11][5] Courts have upheld this rule even when it has been proven that a brother or sister of an ancestor was listed on the rolls but not the direct ancestor himself/herself.

Another issue on the Dawes Rolls are people termed "Five-Dollar Indians." Some white people bribed government officials in order to get land allotments, but this was not as widespread as some would believe.[12][2]

Gregory Smithers, associate professor of history at Virginia Commonwealth University stated, "These were opportunistic white men who wanted access to land or food rations. ... These were people who were more than happy to exploit the Dawes Commission – and government agents, for $5, were willing to turn a blind eye to the graft and corruption."[12] For the small minority that managed this, this fraudulent enrollment may have earned white people potential benefits for themselves and their descendants, but also could have subjected them to further removal, relocation or incarceration; there were also land runs during this time, and other ways for white people to get land.[4] Most of the white people on the Dawes roll are noted as included due to marrying a member of the tribe, and having Indian children.[2]

The Dawes Rolls, though recognized as flawed, are still essential to the citizenship process of the Nations that include them in their laws.[5][6] The federal government uses them in determining blood-quantum status of individuals for Certificate of Degree of Indian Blood.[5]

Thanks. Sometimes people only know what the family has always told them….. like this guy.

Will have to check this guy out.

[PizzaSnake]

"It’s foolish to think Custer had the best interests of Native children in mind when he captured them at gunpoint to slaughter and imprison their parents or that the Indian boarding school system, which disappeared thousands of children and raped, tortured, and traumatized countless more, was about “education”.

Powerful conservative forces want to bring Brackeen v Haaland to the supreme court not just to overturn the ICWA but to gut Native tribes’ federal protections and rights. Like their counterparts the anti-critical race crusaders, anti-ICWA advocates use the language of “equality” to target Native nations. The collective tyranny of the tribe, the thinking goes, violates the rights of the individual.

It’s the libertarian spin on the genocidal logic of Richard Henry Pratt’s nineteenth century maxim to justify child removal: “Kill the Indian, save the man.” The “Indian” is the tribal consciousness; the collective rights of a nation and its sovereignty must be weakened or destroyed to gain access to its lands and resources.

Without the tribe, there is no Indian. When there is no Indian, there’s no one to claim the land."

https://www.theguardian.com/commentisfr ... option-law

[Farfromgeneva]

Scarce Credit Hinders Homeownership on Tribal Land
It takes patience and persistence to write a mortgage on Native American reservations, and most lenders don’t even attempt it

By Ben Eisen | Photographs by Tara Rose Weston for The Wall Street Journal
Aug. 29, 2021 10:00 am ET


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SIOUX FALLS, S.D.—It usually takes a few months to write a mortgage. It once took Juel Burnette four years.

Mr. Burnette runs the Sioux Falls branch of 1st Tribal Lending, one of the few firms that specialize in making home loans on Native American reservations. The byzantine process winds through two federal agencies and tribal governments before it even reaches the banking system. Most lenders don’t even attempt it.

Mr. Burnette tells aspiring homeowners to buckle up. “We talk through the hurdles with them,” he said.

America’s tribal lands, home to more than a million people, are often credit deserts, lacking the access to capital necessary to make homeownership a reality for the Native Americans who desire to live on them.

Traditional mortgages in the U.S. are secured by two valuable pieces of collateral: the home itself and the land on which it sits. But in Indian Country, swaths of land are held in trust, preventing lenders from staking a claim if the homeowner stops paying.

There is a workaround, but it is complicated. Obtaining the necessary approvals can take years, even for borrowers working with experienced lenders like Mr. Burnette. It is one reason Native Americans are less likely to be homeowners: Some 57% of Native Americans owned homes in 2019, versus 72% of whites, according to the Minneapolis Fed’s Center for Indian Country Development.

“When it’s easier to violate indigenous people’s rights by building pipelines through our land, by mining uranium on our land, than it is to get a mortgage, you know something is wrong,” said Nick Tilsen, a member of the Oglala Lakota Nation and president of NDN Collective, a nonprofit that does grass-roots organizing and makes grants and loans to indigenous-led organizations.


Juel Burnette visited a home this month that his lending firm helped finance on the Rosebud Reservation.
The U.S. financial system has built a well-oiled machine for extending credit to high-earning Americans with conventional finances. The machine sputters when confronted with borrowers on the margins, making it tougher to attain homeownership and its wealth-building potential.


Still, there is some optimism in Indian Country that change is afoot. Deb Haaland this year became the first Native American to lead the U.S. Department of Interior, which oversees the Bureau of Indian Affairs. Marcia Fudge, the secretary of Housing and Urban Development, spoke about mortgage access on reservations during her confirmation hearing. Two senators introduced legislation in June to expand mortgage credit on reservations through the U.S. Department of Agriculture.

Getting credit flowing is a tall task. Last year, lenders packaged up and sold less than $900 million of loans through the federal program that supports American Indian home buyers, a tiny fraction of the $4-trillion-plus U.S. mortgage market, according to industry research firm Inside Mortgage Finance.

1st Tribal, a unit of Mid America Mortgage Inc., made roughly $512 million of those loans, more than quadruple any other lender. Mr. Burnette, a member of the Rosebud Sioux tribe, has lined his office wall with reservation maps. He travels to them to give talks on homeownership. He spends much of his days prodding federal government workers to hurry up the process on behalf of his borrowers.

The strategy: “Be a burr under the saddle,” he said.

The Section 184 Indian Home Loan Guarantee Program, administered by HUD, was established in the 1990s to jump-start the flow of mortgage capital to American Indian communities.

“We put significant priority on strengthening the [Section 184] program resources while working across HUD and Ginnie Mae, along with other federal agencies to advance this work,” a HUD spokeswoman said. A Department of Interior spokesman declined to comment.

The program allows a loan to be made against land leased from the trust. (It can also be used by American Indians on non-trust land.)

Obtaining that ground lease requires permission from both the tribal leadership on the reservation and the BIA, the main government agency that works with Native American tribes. Both parties also must approve the sale of an owner-occupied house on leased land.


Many of the homes on Rosebud Reservation are small structures built through government and tribal programs, or trailers.
For Mr. Burnette’s borrowers, the Section 184 process is often filled with stops and starts.


It took more than a year for T.J. Plenty Chief to get a lease to build a home on North Dakota’s Fort Berthold Reservation. He spent about four months obtaining the various approvals from the BIA and his tribes, the Mandan, Hidatsa and Arikara Nation.

But then he learned that the lease wasn’t written in a way that would be acceptable for a federal guarantee on his loan from HUD. He had to go back through the approval process again, which finished late last year.

Though he is now ready to take on the mortgage from 1st Tribal, the cost of lumber and other materials has risen so much that Mr. Plenty Chief fears he can no longer afford to build. The project is on hold.

“It’s been frustrating at times,” he said. “Waiting on this, waiting on that, then the next step. Wait, wait, wait.”

SHARE YOUR THOUGHTS

How would you like to see lawmakers address the issue of homeownership on Native American reservations? Join the conversation below.

The underwriting process comes with its own hurdles. Appraisers are scarce in the rural areas where many reservations are located, Mr. Burnette said. Contractors often lack the special certifications required by Section 184 construction loans.

Once a loan closes, Mr. Burnette’s firm can sell it to Ginnie Mae, an arm of HUD. While this frees up 1st Tribal to make more loans, the work on the closed loans continues.

First, BIA must record the mortgage. Then the loan goes to HUD for an endorsement, effectively a guarantee that the lender will get paid if the borrower defaults. As of this month, 1st Tribal had about 1,700 loans waiting for HUD endorsement, Mr. Burnette said. If the loans aren’t endorsed within a year of closing, the lender can be forced to buy back the loan from Ginnie Mae.

“I was never a patient person growing up,” Mr. Burnette said, “But this job has taught me patience.”

Mr. Burnette was raised on the Rosebud Reservation about 3½ hours west of Sioux Falls. His first finance job was at a bank branch in the middle of Mission, a city on the reservation. The branch was later sold to Norwest Corp., which became Wells Fargo & Co. through a merger. A regional manager plucked him out of the branch to work in the mortgage division in Sioux Falls.

In 2014, Mr. Burnette and some colleagues jumped from Wells Fargo to 1st Tribal. The next year, Wells Fargo stopped making Section 184 loans due to the complexities of the program and other factors, according to a bank spokesman. The bank, he said, makes loans to Native Americans off reservation land through other channels. The current list of Section 184 participating lenders doesn’t include any of the biggest U.S. banks.


Mr. Burnette, whose truck has a vanity license plate with his tribe’s name on it, returns to the reservation periodically to visit and go hunting. On a recent trip through Rosebud, Mr. Burnette pointed out a handful of houses financed with loans he had written.


Juel Burnette spoke with homeowners recently who used the Section 184 loan program to build a home on family land.
But many of the homes are small structures built through government or tribal programs, or trailers that are often bought with high-interest loans. Indian Country needs tens of billions of dollars worth of new housing, according to the Center for Indian Country Development. As a result, overcrowding is common and homes are sometimes in poor condition.

A recent survey showed most of the renters on tribal land would like to own their own homes. Housing counselors say younger residents are most eager to buy.

The Lakota Federal Credit Union, based on the Pine Ridge Reservation to the west of Rosebud, started making home loans in the past year. The credit union has made four so far, with interest rates ranging from 6% to 8%. Tawney Brunsch, who chartered the credit union through her nonprofit lender, Lakota Funds, hopes that its roughly $6 million in deposits will give it firepower to make more loans.

“We’re creating all of our own options because that’s what we have to do,” said Ms. Brunsch, a member of the Oglala Lakota Nation.

It took both Ms. Brunsch and Mr. Burnette to finish the Section 184 construction loan for the charcoal-colored three-bedroom that Nick Hernandez and Liz Welch began building on the Pine Ridge Reservation in 2017.

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Mr. Hernandez, who runs an agricultural nonprofit, owned land in the town of Porcupine because it had been family property since before reservation land went into trust. There was no need to obtain a lease, but the BIA had to approve the mortgage.


“I was on them,” Mr. Hernandez said. “I went to see them every week.”

When the approval arrived after the better part of a year, Mr. Burnette’s firm started writing the Section 184 construction loan. But a problem popped up: The roughly $200,000 loan required an additional cash reserve in case costs ran over. Mr. Hernandez and Ms. Welch had already allocated their savings to closing costs, an engineering report and other expenses.

“We didn’t have any generational wealth,” said Ms. Welch, a consultant for community organizations.

They approached Ms. Brunsch, whose credit union offered them a secured loan to cover the reserve. That allowed Mr. Burnette’s loan to close and construction to move forward.

It is a tough process, Mr. Burnette said, but for those willing to stick with it, “you will be a homeowner at the end.”


Rosebud Reservation is about 3½ hours west of Sioux Falls, S.D.
Write to Ben Eisen at [email protected]

[Farfromgeneva]

"It’s foolish to think Custer had the best interests of Native children in mind when he captured them at gunpoint to slaughter and imprison their parents or that the Indian boarding school system, which disappeared thousands of children and raped, tortured, and traumatized countless more, was about “education”.

Powerful conservative forces want to bring Brackeen v Haaland to the supreme court not just to overturn the ICWA but to gut Native tribes’ federal protections and rights. Like their counterparts the anti-critical race crusaders, anti-ICWA advocates use the language of “equality” to target Native nations. The collective tyranny of the tribe, the thinking goes, violates the rights of the individual.

It’s the libertarian spin on the genocidal logic of Richard Henry Pratt’s nineteenth century maxim to justify child removal: “Kill the Indian, save the man.” The “Indian” is the tribal consciousness; the collective rights of a nation and its sovereignty must be weakened or destroyed to gain access to its lands and resources.

Without the tribe, there is no Indian. When there is no Indian, there’s no one to claim the land."

https://www.theguardian.com/commentisfr ... option-law

I used to have this on a tshirt in late Hs early college. Man I’d like to get another one but it appears that Spencer Gifts has turned into a gay sex shop now more than generic random toys.

http://bdg.centrin.net.id/~muarars/larsonCuster.html

[Farfromgeneva]

There’s also a shop That is arbitraging rules to runs Broker dealer through naive lands. Have a buddy that ran it for a second and left.

https://www.tribalcapitalmarkets.com/

[PizzaSnake]

“Will Americans spend billions to safeguard the coastal playgrounds of the very wealthy? The politics of that may prove every bit as complex as the marine engineering.“

https://www.bloomberg.com/opinion/artic ... nd=premium

[Farfromgeneva]

“Will Americans spend billions to safeguard the coastal playgrounds of the very wealthy? The politics of that may prove every bit as complex as the marine engineering.“

https://www.bloomberg.com/opinion/artic ... nd=premium

PB loves florida but look into their forces state backed wind insurance program. The definition of a off balance sheet risk/obligation (bomb). Not to mention eroding beaches and property lines.

[Farfromgeneva]

Fitch Affirms Florida Citizens Property Insurance Corp. Bonds at 'AA'; Outlook Stable
Fri 29 Jan, 2021 - 4:35 PM ET

Fitch Ratings - New York - 29 Jan 2021: Fitch Ratings has affirmed the following bonds of the Florida Citizens Property Insurance Corporation (Citizens):

--$320 million Personal Lines Account/Commercial Lines Account (PLA/CLA) senior secured bonds, series 2012A-1.

--$500 million Coastal Account senior secured bonds, series 2015A-1.

The Rating Outlook is Stable.



SECURITY

The primary security and the ratings are derived from Citizens' ability to levy emergency assessments on nearly every insurance policyholder in the state for an unlimited duration and in an unlimited cumulative amount to pay debt service on the bonds.

Coastal senior secured bonds are payable from pledged revenues, including: (1) net premiums and surcharges, (2) emergency assessments, (3) regular assessments and (4) Hurricane Catastrophe Fund (FHCF or CAT fund) reimbursements.



PLA/CLA senior secured bonds are payable from pledged revenues, including: (1) net premiums and surcharges, (2) Hurricane Catastrophe Fund (FHCF or CAT fund) reimbursements and (3) emergency assessments.

There is no cross-collateralization between the PLA/CLA and the Coastal Account.



ANALYTICAL CONCLUSION

The 'AA' ratings on bonds issued for the PLA/CLA and for the Coastal Account reflect strong growth prospects for pledged revenues and resiliency in the base that generates the revenues. The rating reflects access to special tax-like emergency assessments and a large and growing assessable base. Growth prospects for revenues are strong with expansion in the Florida economy. The revenue-generating potential of the assessable base provides robust resiliency through a moderate downturn scenario despite its volatility.



KEY RATING DRIVERS

Growth and Resiliency of Pledged Revenues: Fitch expects the assessable base that would generate emergency assessments in support of bonds to exhibit solid growth with long-term expansion in Florida's economy and population. The significant size and diversity of the assessment base results in strong resiliency to support debt service through the economic cycle.

Bonding Capacity: Emergency assessments would support a significant level of bond issuance to cover major hurricane event scenarios. However, the circumstances that would drive the need to access the market could result in concurrent borrowing needs by the PLA/CLA, the Coastal Account and the FHCF, resulting in the potential for overlapping assessments to policyholders. The potential for significant leverage on the same source of assessment modestly tempers Fitch's view of the unlimited nature of the pledge.

Strong Financial Position: Following many years of low catastrophe losses (even with recent hurricane exposure), Citizens' financial position is strong, with continued growth in claims-paying resources. In the event of storm-related claims, Citizens would draw on these expanded claims-paying resources first before issuing bonds.

Separation from Insurance Operations: Emergency assessments are not subject to Citizens' insurance operations. They are collected on, and are a condition of, insurance policy renewals and are an obligation of the insured, rather than the insurer. Citizens is not permitted to file for bankruptcy protection under Chapter 9 of the U.S. bankruptcy code while bonds are outstanding.



RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive rating action/upgrade:

--A sustained increase in growth of the assessable base to levels exceeding national GDP growth.

--Reduced risk profile and liability exposure that reduces the probability or magnitude of potential debt issuance relative to the existing resource base.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

--A lowering of expectations for long-term growth in the assessable base.

--A significant increase in Citizens' risk profile and liability exposure that raises the probability or magnitude of potential debt issuance relative to the existing resource base.

--More severe economic weakness, consistent with Fitch's coronavirus downside scenario, that weakens Citizens' risk profile and raises its liability exposure.



BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Sovereigns, Public Finance and Infrastructure issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of three notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit [https://www.fitchratings.com/site/re/10111579].



CURRENT DEVELOPMENTS

Sectorwide Coronavirus Implications

The ongoing coronavirus pandemic and related government containment measures worldwide has created an uncertain global environment for U.S. state and local governments and related entities. Fitch's ratings are forward-looking in nature; as such, Fitch will monitor the severity and duration of the budgetary impact on state and local governments and incorporate revised expectations for future performance and assessment of key risks.

While the initial phase of economic recovery has been faster than expected, GDP in the U.S. is projected to remain below its 4Q19 level until at least 3Q21. In its baseline scenario, Fitch anticipates a slower recovery in early 2021, with vaccine rollout to vulnerable, key workers and older individuals in 1H21 but limited for most of the population until late 2021. Additional details, including key assumptions and implications of the baseline scenario and a downside scenario, are described in the reports, "Fitch Ratings Coronavirus Scenarios: Baseline and Downside Cases - Update", published on Dec. 7, 2020, and "Fitch Ratings Updates Coronavirus Scenarios for U.S. State and Local Governments", published on Dec. 16, 2020, on www.fitchratings.com.



DEDICATED TAX CREDIT PROFILE

Citizens is a not-for-profit, tax-exempt entity established by Florida statute to provide coverage for those unable to obtain insurance or affordable insurance in Florida's voluntary market. Legislation has been adopted such that it is deemed a governmental entity and not an insurance company, and it is not allowed to file for bankruptcy protection under Chapter 9 of the federal bankruptcy code. Although it is regulated by the Florida Office of Insurance Regulation (OIR), it is not required to obtain or hold a certificate of authority issued by the OIR as is required for private insurance companies domiciled in the state. Fitch has not assigned an Issuer Default Rating.

Citizens operates three distinct and financially separate credits: the Coastal Account and the personal and commercial lines accounts. There is no cross-collateralization between the credits.



Unlimited Nature of Pledge

Ultimate security for the bonds is derived from Citizens' ability to levy "emergency assessments" on nearly every insurance policyholder in the state for an unlimited duration and in an unlimited cumulative amount to pay debt service on the bonds. The emergency assessment base, derived from the premiums written on property and casualty insurance policies in the state, is large and diverse and provides strong support for bondholders. The assessment is levied as a uniform percentage of up to 10% of that year's aggregate statewide direct written premium (DWP) on the subject lines of insurance, or a maximum of 10% of a plan year deficit.

Emergency assessments, however, are not the first source of liquidity for Citizens to meet hurricane or wind event-related claims. Citizens would first tap its available funds on hand, which include both accumulated surpluses and the proceeds of pre-event bond issuance, plus reinsurance from the FHCF and private reinsurance.

Following several years of minimal storm activity (there were no losses for 11 years until Hurricanes Irma in 2017 and Michael in 2018), and with an active program to return policyholders to the private insurance market, Citizens' liquidity remains high, reducing the possibility of the need to levy an emergency assessment following a storm event. Citizens estimates it has more than sufficient liquidity to be able to meet the claims of a 100-year storm event from its available resources without creating a "plan-year deficit" that would give rise to the levying of an emergency assessment. As of 2020, the Coastal Account had an estimated $2.24 billion while the PLA/CLA had $1.57 billion in excess of what would be necessary for a 100-year storm event, an exceptional level of liquidity that Fitch assumes would be reduced if and when used to pay claims for storm activity.

If claims did exceed these resources, however, a plan-year deficit would exist, and Citizens would be obligated to begin levying various surcharges and assessments until its obligations were fully met. Emergency assessments, which can be leveraged or used to pay claims, are expected to be the repayment source for post-event bondholders. The outstanding bonds were issued as pre-event bonds, which provide liquidity to meet potential claims-paying needs for upcoming hurricane season(s). Net proceeds are held in interest-bearing permitted investments pending their use to pay policy claims.



Growth Prospects for Revenue Stream

Given Florida's strong economic resource base, diversification of the economy and favorable migration trends, Fitch anticipates the assessable base will continue to exhibit strong growth. The assessable base has shown such growth during periods of economic expansion. The insurance lines that form the assessable base are very broad and include all property and casualty insurance, excluding only accident and health, workers' compensation and medical malpractice. As the Florida economy overall was hit very hard by the Great Recession, the base declined from its previous high of $37.6 billion in 2007 to a low of $32.2 billion in 2011. The DWP base resumed growth with expansion in the Florida economy and has now more than regained the assessable value lost during the Great Recession. Citizens does not expect the coronavirus-related downturn to have notable impact on the assessable base.

With of $53.2 billion as of 2019, Citizens would be able to assess up to $5.32 billion per year in support of debt service in the Coastal Account and in each of the PLA and CLA accounts. Given the expectation of long-term growth in the Florida economy, the assessable base should continue to demonstrate growth above the level of inflation.



Volatility in the Assessable Base

To evaluate the sensitivity of the dedicated revenue stream to cyclical decline, Fitch considers both revenue sensitivity results (using a 1% decline in national GDP scenario) and the largest decline in revenues over the period covered by the revenue analysis. Based on the longer history of the assessment base for the FHCF, which is now identical to the assessment base for Citizens and will remain so going forward, the Fitch Analytical Stress Test (FAST) model generates a 4% scenario decline in the assessment base. The largest actual decline in the base is an 11% peak-to-trough decline between calendar years 2006 and 2009. Fitch typically calculates the ratio of available revenues to debt service for dedicated tax bonds, but the unlimited nature of the pledge on the bonds eliminates the need for such calculations.

Management of Risk

Citizens' successful efforts to reduce exposure through depopulation and through transferring risk with reinsurance and capital market activity reduces the potential for future leveraging to meet claims. Citizens has undertaken a deliberate program to reduce its policy count and risk exposure, primarily through depopulation. It established a private insurance clearinghouse through which all new policies and renewals are marketed. If private insurers can offer policies within a specified price band, that policy must be placed outside of Citizens.

The policy count and exposure have ticked up since bottoming out in 2016, as slower depopulation has not offset normal growth in policy count. Further, recent storm activity has led to increased pricing and nonrenewals in the Florida homeowners' insurance market. As the insurer of last resort, Citizens' policy count jumped up, particularly in the PLA. Nevertheless, Citizens has reduced policy counts in the PLA by 60% since 2011 and its risk exposure 60%, from $241 billion in 2011 to $95.9 billion as of December 2020, and it has reduced policy counts in the CLA by 94% since 2007 and its risk exposure by 96%, from $77 billion in 2007 to $3.4 billion as of December 2020. Citizens has also reduced the policy count in the Coastal Account by 71% since 2011 and its risk exposure by 81%, from $240 billion in 2008 to $46 billion as of December 2020.

Overlapping Risk Exposure

Even with the current improved risk profile, storm events could result in the need for significant concurrent borrowing for the PLA/CLA, the Coastal Account and the state-run Florida Hurricane Catastrophe Fund, which would all require assessments on the same base of ratepayers. A series of storms that depletes Citizens' liquidity could also result in an expansion of its policy count and risk exposure if weaker private insurers subsequently leave the Florida market. This potential for unlimited risk exposure tempers Fitch's view on the unlimited nature of the pledge.



In addition to the sources of information identified in Fitch's applicable criteria specified below, this action was informed by information from Lumesis.



REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

RATING ACTIONS
ENTITY/DEBT RATING PRIOR
Citizens Property Insurance Corporation (FL)
Citizens Property Insurance Corporation (FL) /Coastal Account/1 LT
LT AA Affirmed AA
Citizens Property Insurance Corporation (FL) /PLA/CLA/1 LT
LT AA Affirmed AA
VIEW ADDITIONAL RATING DETAILS

Additional information is available on www.fitchratings.com

PARTICIPATION STATUS

The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer’s available public disclosure.

APPLICABLE CRITERIA

U.S. Public Finance Tax-Supported Rating Criteria -- Effective 3/27/20--5/4/21 (pub. 27 Mar 2020) (including rating assumption sensitivity)
APPLICABLE MODELS

Numbers in parentheses accompanying applicable model(s) contain hyperlinks to criteria providing description of model(s).

FAST States & Locals - Fitch Analytical Stress Test Model, v2.4.0 (1)
ADDITIONAL DISCLOSURES

Dodd-Frank Rating Information Disclosure Form
Solicitation Status
Endorsement Policy
ENDORSEMENT STATUS

Citizens Property Insurance Corporation (FL) EU Endorsed, UK Endorsed

[PizzaSnake]

Fitch Affirms Florida Citizens Property Insurance Corp. Bonds at 'AA'; Outlook Stable
Fri 29 Jan, 2021 - 4:35 PM ET

Fitch Ratings - New York - 29 Jan 2021: Fitch Ratings has affirmed the following bonds of the Florida Citizens Property Insurance Corporation (Citizens):

--$320 million Personal Lines Account/Commercial Lines Account (PLA/CLA) senior secured bonds, series 2012A-1.

--$500 million Coastal Account senior secured bonds, series 2015A-1.

The Rating Outlook is Stable.



SECURITY

The primary security and the ratings are derived from Citizens' ability to levy emergency assessments on nearly every insurance policyholder in the state for an unlimited duration and in an unlimited cumulative amount to pay debt service on the bonds.

Coastal senior secured bonds are payable from pledged revenues, including: (1) net premiums and surcharges, (2) emergency assessments, (3) regular assessments and (4) Hurricane Catastrophe Fund (FHCF or CAT fund) reimbursements.



PLA/CLA senior secured bonds are payable from pledged revenues, including: (1) net premiums and surcharges, (2) Hurricane Catastrophe Fund (FHCF or CAT fund) reimbursements and (3) emergency assessments.

There is no cross-collateralization between the PLA/CLA and the Coastal Account.



ANALYTICAL CONCLUSION

The 'AA' ratings on bonds issued for the PLA/CLA and for the Coastal Account reflect strong growth prospects for pledged revenues and resiliency in the base that generates the revenues. The rating reflects access to special tax-like emergency assessments and a large and growing assessable base. Growth prospects for revenues are strong with expansion in the Florida economy. The revenue-generating potential of the assessable base provides robust resiliency through a moderate downturn scenario despite its volatility.



KEY RATING DRIVERS

Growth and Resiliency of Pledged Revenues: Fitch expects the assessable base that would generate emergency assessments in support of bonds to exhibit solid growth with long-term expansion in Florida's economy and population. The significant size and diversity of the assessment base results in strong resiliency to support debt service through the economic cycle.

Bonding Capacity: Emergency assessments would support a significant level of bond issuance to cover major hurricane event scenarios. However, the circumstances that would drive the need to access the market could result in concurrent borrowing needs by the PLA/CLA, the Coastal Account and the FHCF, resulting in the potential for overlapping assessments to policyholders. The potential for significant leverage on the same source of assessment modestly tempers Fitch's view of the unlimited nature of the pledge.

Strong Financial Position: Following many years of low catastrophe losses (even with recent hurricane exposure), Citizens' financial position is strong, with continued growth in claims-paying resources. In the event of storm-related claims, Citizens would draw on these expanded claims-paying resources first before issuing bonds.

Separation from Insurance Operations: Emergency assessments are not subject to Citizens' insurance operations. They are collected on, and are a condition of, insurance policy renewals and are an obligation of the insured, rather than the insurer. Citizens is not permitted to file for bankruptcy protection under Chapter 9 of the U.S. bankruptcy code while bonds are outstanding.



RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive rating action/upgrade:

--A sustained increase in growth of the assessable base to levels exceeding national GDP growth.

--Reduced risk profile and liability exposure that reduces the probability or magnitude of potential debt issuance relative to the existing resource base.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

--A lowering of expectations for long-term growth in the assessable base.

--A significant increase in Citizens' risk profile and liability exposure that raises the probability or magnitude of potential debt issuance relative to the existing resource base.

--More severe economic weakness, consistent with Fitch's coronavirus downside scenario, that weakens Citizens' risk profile and raises its liability exposure.



BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Sovereigns, Public Finance and Infrastructure issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of three notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit [https://www.fitchratings.com/site/re/10111579].



CURRENT DEVELOPMENTS

Sectorwide Coronavirus Implications

The ongoing coronavirus pandemic and related government containment measures worldwide has created an uncertain global environment for U.S. state and local governments and related entities. Fitch's ratings are forward-looking in nature; as such, Fitch will monitor the severity and duration of the budgetary impact on state and local governments and incorporate revised expectations for future performance and assessment of key risks.

While the initial phase of economic recovery has been faster than expected, GDP in the U.S. is projected to remain below its 4Q19 level until at least 3Q21. In its baseline scenario, Fitch anticipates a slower recovery in early 2021, with vaccine rollout to vulnerable, key workers and older individuals in 1H21 but limited for most of the population until late 2021. Additional details, including key assumptions and implications of the baseline scenario and a downside scenario, are described in the reports, "Fitch Ratings Coronavirus Scenarios: Baseline and Downside Cases - Update", published on Dec. 7, 2020, and "Fitch Ratings Updates Coronavirus Scenarios for U.S. State and Local Governments", published on Dec. 16, 2020, on www.fitchratings.com.



DEDICATED TAX CREDIT PROFILE

Citizens is a not-for-profit, tax-exempt entity established by Florida statute to provide coverage for those unable to obtain insurance or affordable insurance in Florida's voluntary market. Legislation has been adopted such that it is deemed a governmental entity and not an insurance company, and it is not allowed to file for bankruptcy protection under Chapter 9 of the federal bankruptcy code. Although it is regulated by the Florida Office of Insurance Regulation (OIR), it is not required to obtain or hold a certificate of authority issued by the OIR as is required for private insurance companies domiciled in the state. Fitch has not assigned an Issuer Default Rating.

Citizens operates three distinct and financially separate credits: the Coastal Account and the personal and commercial lines accounts. There is no cross-collateralization between the credits.



Unlimited Nature of Pledge

Ultimate security for the bonds is derived from Citizens' ability to levy "emergency assessments" on nearly every insurance policyholder in the state for an unlimited duration and in an unlimited cumulative amount to pay debt service on the bonds. The emergency assessment base, derived from the premiums written on property and casualty insurance policies in the state, is large and diverse and provides strong support for bondholders. The assessment is levied as a uniform percentage of up to 10% of that year's aggregate statewide direct written premium (DWP) on the subject lines of insurance, or a maximum of 10% of a plan year deficit.

Emergency assessments, however, are not the first source of liquidity for Citizens to meet hurricane or wind event-related claims. Citizens would first tap its available funds on hand, which include both accumulated surpluses and the proceeds of pre-event bond issuance, plus reinsurance from the FHCF and private reinsurance.

Following several years of minimal storm activity (there were no losses for 11 years until Hurricanes Irma in 2017 and Michael in 2018), and with an active program to return policyholders to the private insurance market, Citizens' liquidity remains high, reducing the possibility of the need to levy an emergency assessment following a storm event. Citizens estimates it has more than sufficient liquidity to be able to meet the claims of a 100-year storm event from its available resources without creating a "plan-year deficit" that would give rise to the levying of an emergency assessment. As of 2020, the Coastal Account had an estimated $2.24 billion while the PLA/CLA had $1.57 billion in excess of what would be necessary for a 100-year storm event, an exceptional level of liquidity that Fitch assumes would be reduced if and when used to pay claims for storm activity.

If claims did exceed these resources, however, a plan-year deficit would exist, and Citizens would be obligated to begin levying various surcharges and assessments until its obligations were fully met. Emergency assessments, which can be leveraged or used to pay claims, are expected to be the repayment source for post-event bondholders. The outstanding bonds were issued as pre-event bonds, which provide liquidity to meet potential claims-paying needs for upcoming hurricane season(s). Net proceeds are held in interest-bearing permitted investments pending their use to pay policy claims.



Growth Prospects for Revenue Stream

Given Florida's strong economic resource base, diversification of the economy and favorable migration trends, Fitch anticipates the assessable base will continue to exhibit strong growth. The assessable base has shown such growth during periods of economic expansion. The insurance lines that form the assessable base are very broad and include all property and casualty insurance, excluding only accident and health, workers' compensation and medical malpractice. As the Florida economy overall was hit very hard by the Great Recession, the base declined from its previous high of $37.6 billion in 2007 to a low of $32.2 billion in 2011. The DWP base resumed growth with expansion in the Florida economy and has now more than regained the assessable value lost during the Great Recession. Citizens does not expect the coronavirus-related downturn to have notable impact on the assessable base.

With of $53.2 billion as of 2019, Citizens would be able to assess up to $5.32 billion per year in support of debt service in the Coastal Account and in each of the PLA and CLA accounts. Given the expectation of long-term growth in the Florida economy, the assessable base should continue to demonstrate growth above the level of inflation.



Volatility in the Assessable Base

To evaluate the sensitivity of the dedicated revenue stream to cyclical decline, Fitch considers both revenue sensitivity results (using a 1% decline in national GDP scenario) and the largest decline in revenues over the period covered by the revenue analysis. Based on the longer history of the assessment base for the FHCF, which is now identical to the assessment base for Citizens and will remain so going forward, the Fitch Analytical Stress Test (FAST) model generates a 4% scenario decline in the assessment base. The largest actual decline in the base is an 11% peak-to-trough decline between calendar years 2006 and 2009. Fitch typically calculates the ratio of available revenues to debt service for dedicated tax bonds, but the unlimited nature of the pledge on the bonds eliminates the need for such calculations.

Management of Risk

Citizens' successful efforts to reduce exposure through depopulation and through transferring risk with reinsurance and capital market activity reduces the potential for future leveraging to meet claims. Citizens has undertaken a deliberate program to reduce its policy count and risk exposure, primarily through depopulation. It established a private insurance clearinghouse through which all new policies and renewals are marketed. If private insurers can offer policies within a specified price band, that policy must be placed outside of Citizens.

The policy count and exposure have ticked up since bottoming out in 2016, as slower depopulation has not offset normal growth in policy count. Further, recent storm activity has led to increased pricing and nonrenewals in the Florida homeowners' insurance market. As the insurer of last resort, Citizens' policy count jumped up, particularly in the PLA. Nevertheless, Citizens has reduced policy counts in the PLA by 60% since 2011 and its risk exposure 60%, from $241 billion in 2011 to $95.9 billion as of December 2020, and it has reduced policy counts in the CLA by 94% since 2007 and its risk exposure by 96%, from $77 billion in 2007 to $3.4 billion as of December 2020. Citizens has also reduced the policy count in the Coastal Account by 71% since 2011 and its risk exposure by 81%, from $240 billion in 2008 to $46 billion as of December 2020.

Overlapping Risk Exposure

Even with the current improved risk profile, storm events could result in the need for significant concurrent borrowing for the PLA/CLA, the Coastal Account and the state-run Florida Hurricane Catastrophe Fund, which would all require assessments on the same base of ratepayers. A series of storms that depletes Citizens' liquidity could also result in an expansion of its policy count and risk exposure if weaker private insurers subsequently leave the Florida market. This potential for unlimited risk exposure tempers Fitch's view on the unlimited nature of the pledge.



In addition to the sources of information identified in Fitch's applicable criteria specified below, this action was informed by information from Lumesis.



REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

RATING ACTIONS
ENTITY/DEBT RATING PRIOR
Citizens Property Insurance Corporation (FL)
Citizens Property Insurance Corporation (FL) /Coastal Account/1 LT
LT AA Affirmed AA
Citizens Property Insurance Corporation (FL) /PLA/CLA/1 LT
LT AA Affirmed AA
VIEW ADDITIONAL RATING DETAILS

Additional information is available on www.fitchratings.com

PARTICIPATION STATUS

The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer’s available public disclosure.

APPLICABLE CRITERIA

U.S. Public Finance Tax-Supported Rating Criteria -- Effective 3/27/20--5/4/21 (pub. 27 Mar 2020) (including rating assumption sensitivity)
APPLICABLE MODELS

Numbers in parentheses accompanying applicable model(s) contain hyperlinks to criteria providing description of model(s).

FAST States & Locals - Fitch Analytical Stress Test Model, v2.4.0 (1)
ADDITIONAL DISCLOSURES

Dodd-Frank Rating Information Disclosure Form
Solicitation Status
Endorsement Policy
ENDORSEMENT STATUS

Citizens Property Insurance Corporation (FL) EU Endorsed, UK Endorsed

What about blue sky flooding? Saltwater intrusion into aquifer? Excessive heat?

Florida will be uninhabitable in 30 years.

[Farfromgeneva]

You know way more about environmental science than i do. I just learn things about governments and businesses as I get involved in the financing or advisory side of their businesses.

But in general FL has problems for sure. And if you read these bond credo agreements as noted in Fitch report the entire state is on the hook for cat losses in excess of premiums but you don’t see that reflected in overall state financial condition as it’s a contingent liability with an unknown potential. If you think insurers, particularly Govt run ones, are great at finding their contingent liabilities then I’d point you to the insolvency of the HUD housing guarantee program (FHA, Va et non Fannie/Freddie) a few years back or the disaster that is known as PBGC (Pension Benefit Guaranty Corp) so I’d bet some real money they’ve fubarred the actuarial tables and or know privately that it’s an underfunded insurance program to benefit waterfront landowners.

[Farfromgeneva]

Fitch Affirms Florida Citizens Property Insurance Corp. Bonds at 'AA'; Outlook Stable
Fri 29 Jan, 2021 - 4:35 PM ET

Fitch Ratings - New York - 29 Jan 2021: Fitch Ratings has affirmed the following bonds of the Florida Citizens Property Insurance Corporation (Citizens):

--$320 million Personal Lines Account/Commercial Lines Account (PLA/CLA) senior secured bonds, series 2012A-1.

--$500 million Coastal Account senior secured bonds, series 2015A-1.

The Rating Outlook is Stable.



SECURITY

The primary security and the ratings are derived from Citizens' ability to levy emergency assessments on nearly every insurance policyholder in the state for an unlimited duration and in an unlimited cumulative amount to pay debt service on the bonds.

Coastal senior secured bonds are payable from pledged revenues, including: (1) net premiums and surcharges, (2) emergency assessments, (3) regular assessments and (4) Hurricane Catastrophe Fund (FHCF or CAT fund) reimbursements.



PLA/CLA senior secured bonds are payable from pledged revenues, including: (1) net premiums and surcharges, (2) Hurricane Catastrophe Fund (FHCF or CAT fund) reimbursements and (3) emergency assessments.

There is no cross-collateralization between the PLA/CLA and the Coastal Account.



ANALYTICAL CONCLUSION

The 'AA' ratings on bonds issued for the PLA/CLA and for the Coastal Account reflect strong growth prospects for pledged revenues and resiliency in the base that generates the revenues. The rating reflects access to special tax-like emergency assessments and a large and growing assessable base. Growth prospects for revenues are strong with expansion in the Florida economy. The revenue-generating potential of the assessable base provides robust resiliency through a moderate downturn scenario despite its volatility.



KEY RATING DRIVERS

Growth and Resiliency of Pledged Revenues: Fitch expects the assessable base that would generate emergency assessments in support of bonds to exhibit solid growth with long-term expansion in Florida's economy and population. The significant size and diversity of the assessment base results in strong resiliency to support debt service through the economic cycle.

Bonding Capacity: Emergency assessments would support a significant level of bond issuance to cover major hurricane event scenarios. However, the circumstances that would drive the need to access the market could result in concurrent borrowing needs by the PLA/CLA, the Coastal Account and the FHCF, resulting in the potential for overlapping assessments to policyholders. The potential for significant leverage on the same source of assessment modestly tempers Fitch's view of the unlimited nature of the pledge.

Strong Financial Position: Following many years of low catastrophe losses (even with recent hurricane exposure), Citizens' financial position is strong, with continued growth in claims-paying resources. In the event of storm-related claims, Citizens would draw on these expanded claims-paying resources first before issuing bonds.

Separation from Insurance Operations: Emergency assessments are not subject to Citizens' insurance operations. They are collected on, and are a condition of, insurance policy renewals and are an obligation of the insured, rather than the insurer. Citizens is not permitted to file for bankruptcy protection under Chapter 9 of the U.S. bankruptcy code while bonds are outstanding.



RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive rating action/upgrade:

--A sustained increase in growth of the assessable base to levels exceeding national GDP growth.

--Reduced risk profile and liability exposure that reduces the probability or magnitude of potential debt issuance relative to the existing resource base.

Factors that could, individually or collectively, lead to negative rating action/downgrade:

--A lowering of expectations for long-term growth in the assessable base.

--A significant increase in Citizens' risk profile and liability exposure that raises the probability or magnitude of potential debt issuance relative to the existing resource base.

--More severe economic weakness, consistent with Fitch's coronavirus downside scenario, that weakens Citizens' risk profile and raises its liability exposure.



BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Sovereigns, Public Finance and Infrastructure issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of three notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit [https://www.fitchratings.com/site/re/10111579].



CURRENT DEVELOPMENTS

Sectorwide Coronavirus Implications

The ongoing coronavirus pandemic and related government containment measures worldwide has created an uncertain global environment for U.S. state and local governments and related entities. Fitch's ratings are forward-looking in nature; as such, Fitch will monitor the severity and duration of the budgetary impact on state and local governments and incorporate revised expectations for future performance and assessment of key risks.

While the initial phase of economic recovery has been faster than expected, GDP in the U.S. is projected to remain below its 4Q19 level until at least 3Q21. In its baseline scenario, Fitch anticipates a slower recovery in early 2021, with vaccine rollout to vulnerable, key workers and older individuals in 1H21 but limited for most of the population until late 2021. Additional details, including key assumptions and implications of the baseline scenario and a downside scenario, are described in the reports, "Fitch Ratings Coronavirus Scenarios: Baseline and Downside Cases - Update", published on Dec. 7, 2020, and "Fitch Ratings Updates Coronavirus Scenarios for U.S. State and Local Governments", published on Dec. 16, 2020, on www.fitchratings.com.



DEDICATED TAX CREDIT PROFILE

Citizens is a not-for-profit, tax-exempt entity established by Florida statute to provide coverage for those unable to obtain insurance or affordable insurance in Florida's voluntary market. Legislation has been adopted such that it is deemed a governmental entity and not an insurance company, and it is not allowed to file for bankruptcy protection under Chapter 9 of the federal bankruptcy code. Although it is regulated by the Florida Office of Insurance Regulation (OIR), it is not required to obtain or hold a certificate of authority issued by the OIR as is required for private insurance companies domiciled in the state. Fitch has not assigned an Issuer Default Rating.

Citizens operates three distinct and financially separate credits: the Coastal Account and the personal and commercial lines accounts. There is no cross-collateralization between the credits.



Unlimited Nature of Pledge

Ultimate security for the bonds is derived from Citizens' ability to levy "emergency assessments" on nearly every insurance policyholder in the state for an unlimited duration and in an unlimited cumulative amount to pay debt service on the bonds. The emergency assessment base, derived from the premiums written on property and casualty insurance policies in the state, is large and diverse and provides strong support for bondholders. The assessment is levied as a uniform percentage of up to 10% of that year's aggregate statewide direct written premium (DWP) on the subject lines of insurance, or a maximum of 10% of a plan year deficit.

Emergency assessments, however, are not the first source of liquidity for Citizens to meet hurricane or wind event-related claims. Citizens would first tap its available funds on hand, which include both accumulated surpluses and the proceeds of pre-event bond issuance, plus reinsurance from the FHCF and private reinsurance.

Following several years of minimal storm activity (there were no losses for 11 years until Hurricanes Irma in 2017 and Michael in 2018), and with an active program to return policyholders to the private insurance market, Citizens' liquidity remains high, reducing the possibility of the need to levy an emergency assessment following a storm event. Citizens estimates it has more than sufficient liquidity to be able to meet the claims of a 100-year storm event from its available resources without creating a "plan-year deficit" that would give rise to the levying of an emergency assessment. As of 2020, the Coastal Account had an estimated $2.24 billion while the PLA/CLA had $1.57 billion in excess of what would be necessary for a 100-year storm event, an exceptional level of liquidity that Fitch assumes would be reduced if and when used to pay claims for storm activity.

If claims did exceed these resources, however, a plan-year deficit would exist, and Citizens would be obligated to begin levying various surcharges and assessments until its obligations were fully met. Emergency assessments, which can be leveraged or used to pay claims, are expected to be the repayment source for post-event bondholders. The outstanding bonds were issued as pre-event bonds, which provide liquidity to meet potential claims-paying needs for upcoming hurricane season(s). Net proceeds are held in interest-bearing permitted investments pending their use to pay policy claims.



Growth Prospects for Revenue Stream

Given Florida's strong economic resource base, diversification of the economy and favorable migration trends, Fitch anticipates the assessable base will continue to exhibit strong growth. The assessable base has shown such growth during periods of economic expansion. The insurance lines that form the assessable base are very broad and include all property and casualty insurance, excluding only accident and health, workers' compensation and medical malpractice. As the Florida economy overall was hit very hard by the Great Recession, the base declined from its previous high of $37.6 billion in 2007 to a low of $32.2 billion in 2011. The DWP base resumed growth with expansion in the Florida economy and has now more than regained the assessable value lost during the Great Recession. Citizens does not expect the coronavirus-related downturn to have notable impact on the assessable base.

With of $53.2 billion as of 2019, Citizens would be able to assess up to $5.32 billion per year in support of debt service in the Coastal Account and in each of the PLA and CLA accounts. Given the expectation of long-term growth in the Florida economy, the assessable base should continue to demonstrate growth above the level of inflation.



Volatility in the Assessable Base

To evaluate the sensitivity of the dedicated revenue stream to cyclical decline, Fitch considers both revenue sensitivity results (using a 1% decline in national GDP scenario) and the largest decline in revenues over the period covered by the revenue analysis. Based on the longer history of the assessment base for the FHCF, which is now identical to the assessment base for Citizens and will remain so going forward, the Fitch Analytical Stress Test (FAST) model generates a 4% scenario decline in the assessment base. The largest actual decline in the base is an 11% peak-to-trough decline between calendar years 2006 and 2009. Fitch typically calculates the ratio of available revenues to debt service for dedicated tax bonds, but the unlimited nature of the pledge on the bonds eliminates the need for such calculations.

Management of Risk

Citizens' successful efforts to reduce exposure through depopulation and through transferring risk with reinsurance and capital market activity reduces the potential for future leveraging to meet claims. Citizens has undertaken a deliberate program to reduce its policy count and risk exposure, primarily through depopulation. It established a private insurance clearinghouse through which all new policies and renewals are marketed. If private insurers can offer policies within a specified price band, that policy must be placed outside of Citizens.

The policy count and exposure have ticked up since bottoming out in 2016, as slower depopulation has not offset normal growth in policy count. Further, recent storm activity has led to increased pricing and nonrenewals in the Florida homeowners' insurance market. As the insurer of last resort, Citizens' policy count jumped up, particularly in the PLA. Nevertheless, Citizens has reduced policy counts in the PLA by 60% since 2011 and its risk exposure 60%, from $241 billion in 2011 to $95.9 billion as of December 2020, and it has reduced policy counts in the CLA by 94% since 2007 and its risk exposure by 96%, from $77 billion in 2007 to $3.4 billion as of December 2020. Citizens has also reduced the policy count in the Coastal Account by 71% since 2011 and its risk exposure by 81%, from $240 billion in 2008 to $46 billion as of December 2020.

Overlapping Risk Exposure

Even with the current improved risk profile, storm events could result in the need for significant concurrent borrowing for the PLA/CLA, the Coastal Account and the state-run Florida Hurricane Catastrophe Fund, which would all require assessments on the same base of ratepayers. A series of storms that depletes Citizens' liquidity could also result in an expansion of its policy count and risk exposure if weaker private insurers subsequently leave the Florida market. This potential for unlimited risk exposure tempers Fitch's view on the unlimited nature of the pledge.



In addition to the sources of information identified in Fitch's applicable criteria specified below, this action was informed by information from Lumesis.



REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

RATING ACTIONS
ENTITY/DEBT RATING PRIOR
Citizens Property Insurance Corporation (FL)
Citizens Property Insurance Corporation (FL) /Coastal Account/1 LT
LT AA Affirmed AA
Citizens Property Insurance Corporation (FL) /PLA/CLA/1 LT
LT AA Affirmed AA
VIEW ADDITIONAL RATING DETAILS

Additional information is available on www.fitchratings.com

PARTICIPATION STATUS

The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer’s available public disclosure.

APPLICABLE CRITERIA

U.S. Public Finance Tax-Supported Rating Criteria -- Effective 3/27/20--5/4/21 (pub. 27 Mar 2020) (including rating assumption sensitivity)
APPLICABLE MODELS

Numbers in parentheses accompanying applicable model(s) contain hyperlinks to criteria providing description of model(s).

FAST States & Locals - Fitch Analytical Stress Test Model, v2.4.0 (1)
ADDITIONAL DISCLOSURES

Dodd-Frank Rating Information Disclosure Form
Solicitation Status
Endorsement Policy
ENDORSEMENT STATUS

Citizens Property Insurance Corporation (FL) EU Endorsed, UK Endorsed

What about blue sky flooding? Saltwater intrusion into aquifer? Excessive heat?

Florida will be uninhabitable in 30 years.

Notwithstanding Fitchs note they hit the bond market hard last may

Florida Citizens aims to near double new cat bond to $950m in size

10TH MAY 2021 - AUTHOR: STEVE EVANS
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Citizens Property Insurance Corporationis set to significantly increase the amount of capital market backed reinsurance it has in-force from catastrophe bonds, with its latest Everglades Re II Ltd. (Series 2021-1 & 2021-2) issuances now targeting between $800 million and $950 million of coverage.

Florida Citizens logoThe not for profit property insurer for the state of Florida, Citizens has been tapping the insurance-linked securities (ILS) market as part of its reinsurance arrangements using catastrophe bonds since 2012.

Details of every Florida Citizens sponsored 144A cat bond can be found here.

In recent years, Everglades Re cat bonds from Florida Citizens have shrunk in the amount of cover they provide alongside its overall reinsurance arrangements, as declining insured values at-risk in its portfolio meant less protection was required.

But over the last year or so, Citizens book of business has dramatically increased again, leading the company to require more reinsurance and once again upsize on its cat bond backed coverage.

As we explained back in March, Florida’s Citizens Property Insurance Corporation is targeting securing at least a $2.6 billion reinsurance and risk transfer program, in readiness for the 2021 hurricane season, with as much as $850 million of new catastrophe bonds likely to be a part of it.

As anticipated, Citizens returned to the catastrophe bond market in late April with a target for a $500 million or greater dual-series issuance, this latest Everglades Re II Ltd. Series 2021-1 and Series 2021-2 deal.

But with catastrophe bond investor demand remaining very strong and market conditions delivering strong execution for sponsors in 2021, there was always a strong chance the deal could upsize.

Sources have now told us that Florida Citizens now aims to secure up to $950 million of fully-collateralized Florida named storms reinsurance protection with this deal, so possibly a near doubling for the issuance.

The transaction will provide Florida Citizens with fully-collateralized reinsurance protection, on an indemnity trigger and annual aggregate basis, against losses from Florida named storms and hurricanes over a three-year term to May 2024, with coverage included for both its Coastal Account and Personal Lines Account books of insurance business.

The Series 2021-1 Class A tranche of Coastal Account notes have an initial expected loss of 1.1% and were $175 million in size at launch. We’re now told the target for this tranche is $300 million to $350 million. These notes were first offered to investors with price guidance of 5.75% to 6.5%, but this has now fallen to the low-end at 5.75%, we’re told.

The Series 2021-1 tranche of Class B notes will also cover the same Coastal Account book, but are a little riskier with an initial expected loss of 1.67%. This tranche was also $175 million at launch, but the target has now been lifted to between $225 million and $275 million. The notes were first offered to cat bond investors with price guidance in a range from 6.75% to 7.5%, but this has now also fallen to the low-end of guidance at 6.75%.

The final originally $150 million Series 2021-2 Class A tranche of notes will cover some of the risks in Citizens Personal Lines Account and have an initial expected loss of 1.03%. The target for this tranche now stands at $275 million to $325 million. These notes were first marketed with coupon price guidance in a range from 5.75% to 6.5%, which has now also fallen to the low-end at 5.75%.

So all three tranches of cat bond notes to be issued by Everglades Re II Ltd. for Citizens are set to increase in size, while pricing looks likely to settle for all three at the bottom-end of guidance.

Representing another strong execution from the global catastrophe bond market, as investor demand helps sponsors to upsized and keenly priced collateralized, multi-year reinsurance protection.

At between $800 million and $950 million this will be one of the biggest catastrophe bond issues on record, although still some way off Florida Citizens own record $1.5bn deal from 2014.

You can read all about Florida Citizens latest catastrophe bond, the Everglades Re II Ltd. (Series 2021-1 & 2021-2) transaction, as well as every other cat bond transaction in our extensive Artemis Deal Directory.

——————————————————————

[PizzaSnake]

Flexner report.

"The report recommended that Black doctors see only Black patients, and that they should focus on areas like hygiene, calling it “dangerous” for them to specialize in other parts of the profession. Flexner said the white medical field should offer Black patients care as a moral imperative, but also because it was necessary to prevent them from transmitting diseases to white people. Integration, seen as medically dangerous, was out of the question."

https://www.nytimes.com/2021/08/30/upsh ... y-gap.html

[Farfromgeneva]

Board member who called BLM activists “true racists” leaves major apparel company
Courtenay Brown
Courtenay Brown
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One of the world's biggest apparel companies said a board member, Veronica Wu, stepped down on Tuesday, days after emails obtained by Axios showed Wu dismissed racism in America and said Black Lives Matter activists were the "true racists."

What they're saying: VF Corp. — which owns iconic brands like The North Face, Timberland and Supreme — said Wu's decision to resign "was not the result of any disagreement with VF on any matter relating to VF’s operations, policies or practices."

A spokesperson said VF Corp. had no comment beyond the press release and did not respond to a question about why Wu stepped down from the board. Wu did not immediately respond to an email.
The company said its board would be reduced to 11 members from 12 "until a new director is identified."
Wu initially joined the board in 2019.
Catch up quick: “I don’t believe in Black Lives Matter. If anything I think they are the true racists trying to stir up things to make this country going [sic] to socialism or even communism potentially,” Wu wrote in part in an email exchange obtained by Axios in June 2020.

The email came in response to a note that Juneteenth would be recognized as a company holiday at Hone Capital, a venture capital firm where Wu served as managing partner.
Go deeper: Silicon Valley investor dismissed racism, called BLM "the true racists"

[Farfromgeneva]

Two minute mark, give or take, into this clip

https://m.youtube.com/watch?v=WAb9--t0kXU

[a fan]

— said Wu's decision to resign "was not the result of any disagreement with VF on any matter relating to VF’s operations, policies or practices."

A spokesperson said VF Corp. had no comment beyond the press release and did not respond to a question about why Wu stepped down from the board. Wu did not immediately respond to an email.
The company said its board would be reduced to 11 members from 12 "until a new director is identified."
Wu initially joined the board in 2019.
Catch up quick: “I don’t believe in Black Lives Matter. If anything I think they are the true racists trying to stir up things to make this country going [sic] to socialism or even communism potentially,” Wu wrote in part in an email exchange obtained by Axios in June 2020.

Show of hands: who wants to take a wild guess as to whether or not Ms. Wu was educated at a Government owned and operated University or not? You know: the socialists. So again, if you're against socialism, that's great. Then stop choosing to attend socialist Universities. You think the government wrecks everything, remember? So attend private Universities.....or stop telling us that socialism is bad.

At some point, the anti-socialists have to put a stake in the ground, and tell us what the F definition they're using for socialism.

Because it's obvious that these people have no idea as to what the word means. Which is fine, but they have to give us an actual definition, so that we (and they) can understand what it is that they think they are against.

[Farfromgeneva]

— said Wu's decision to resign "was not the result of any disagreement with VF on any matter relating to VF’s operations, policies or practices."

A spokesperson said VF Corp. had no comment beyond the press release and did not respond to a question about why Wu stepped down from the board. Wu did not immediately respond to an email.
The company said its board would be reduced to 11 members from 12 "until a new director is identified."
Wu initially joined the board in 2019.
Catch up quick: “I don’t believe in Black Lives Matter. If anything I think they are the true racists trying to stir up things to make this country going [sic] to socialism or even communism potentially,” Wu wrote in part in an email exchange obtained by Axios in June 2020.

Show of hands: who wants to take a wild guess as to whether or not Ms. Wu was educated at a Government owned and operated University or not? You know: the socialists. So again, if you're against socialism, that's great. Then stop choosing to attend socialist Universities. You think the government wrecks everything, remember? So attend private Universities.....or stop telling us that socialism is bad.

At some point, the anti-socialists have to put a stake in the ground, and tell us what the F definition they're using for socialism.

Because it's obvious that these people have no idea as to what the word means. Which is fine, but they have to give us an actual definition, so that we (and they) can understand what it is that they think they are against.

You really like to swing from the nuts of this singular argument a lot eh? I worked for a Frankfurt based bank and have a close college friend from Oyten (outside Bremen) as well as living in Denmark and studying EU business and economics during the coalescence of a lot of the EMU so quite familiar with the education system you got in Germany but there’s a lot more to this discussion than the way you frame it. Not that I am sin agreement with this VC lady but if you don’t want to become predictable perhaps another angle once in a while could move perception.

This is not some hack who makes a low barrier entry pillow or crappy pizza that southern folks can’t distinguish from good stuff so it would take a lot more here IMO but she’s out of her mind and has stepped down from North Face (VF opco) not because of her socialism comment but the entirety of her position.

[a fan]

You really like to swing from the nuts of this singular argument a lot eh?

Yes. Now why do you suppose that is?

Because this fake "socialism is bad" "government is bad" trope is keeping America from moving forward with sensible legislation that helps the bottom 80% earners. We are falling behind every other 1st world nation in almost every metric. I'd like that to stop, please.

If playing games with the word "socialism" didn't have these consequences, I wouldn't care. Not even a little. Words have consequences, some of them very serious. Which is why politicians spend so much time spinning words to mean what they don't really mean.

I have yet to have one single poster who is against socialism tell me what socialism is, assuming that, for example, the University of Maryland Health Center isn't an example of socialism.

(it's the letter of the definition example of socialism)

[Farfromgeneva]

You really like to swing from the nuts of this singular argument a lot eh?

Yes. Now why do you suppose that is?

Because this fake "socialism is bad" "government is bad" trope is keeping America from moving forward with sensible legislation that helps the bottom 80% earners. We are falling behind every other 1st world nation in almost every metric. I'd like that to stop, please.

If playing games with the word "socialism" didn't have these consequences, I wouldn't care. Not even a little. Words have consequences, some of them very serious. Which is why politicians spend so much time spinning words to mean what they don't really mean.

I have yet to have one single poster who is against socialism tell me what socialism is, assuming that, for example, the University of Maryland Health Center isn't an example of socialism.

(it's the letter of the definition example of socialism)

I realize I’m not your intended audience but it’s like if I said something directionally accurate enough for whom Im directing it towards in your view but was technically troubling regarding the production of bourbon you’d probably take some degree of an issue. I know folks think of me as a banker but I was balls deep in economics and nearly went PhD track but figured I could make money and teach part time while thinking about things, wearing a tweed jacket with leather elbow patches and go balls deep in undergrads Donald Sutherland style. Hence I still read technical white papers and participate in Omicron related activities to this day and get a little janky when folks make directionally correct but technically imprecise arguments on macro concepts.

I did try in the past and direct you to more technically localized definitions, it’s not any and every wealth transfer (wealth transfer is a positive not normative term) within an agreed up group that forms a government which is the extreme position you seem to stand up for.

(I love bourbon and would never ever mess with even though I haven’t had any bourbon in three months and not sure I ever will again)

[Farfromgeneva]

BTW Wu went to Yale

[Jim Malone]

Might be!

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