Citizens Property Insurance Corporation

The Q2 Retirement Plan Committee meeting agenda included the introduction of a new Committee member, Denise Bass. Key discussion points involved the Plan Administrator Update for Q2, including an executive summary and plan statistics. The investment fund review covered Q2 performance recap, funds on the watch list, regulatory updates, and statistics on employee utilization of webinars and 1-on-1 sessions. The committee was scheduled to review SECURE 1.0 & 2.0 Provisions for consideration and vote, consider amendments to plan documents, review the Sageview Collective Investment Trust (CIT), and consider the renewal of the Sageview contract with a one-year extension. The agenda concluded with consideration for a new Committee Chair and public comments.

The key discussion focused on the Florida Market Assistance Plan (FMAP) Budget for the service organization created by the legislature in 1985 to assist applicants unable to acquire property insurance. The budget detailed an income of $261,000 from 580 participating carriers and general/administrative expenses of $255,611, resulting in a surplus before adjusting for beginning net assets. The board also reviewed the FMAP Board of Governors Meeting Minutes from December 6, 2023, for accuracy. The board ultimately approved the FMAP Annual Report.

The meeting involved the approval of the prior Audit Committee Meeting Minutes from September 24, 2025, though this specific document appears to be related to the meeting held on December 10, 2025, which is discussing the prior minutes. Key discussions included a report from the Chief of Internal Audit detailing completed engagements such as Claims IA Invoice Processing, Enterprise Risk Management, and Third Party Risk Management System review, along with plans for upcoming audits in Q4 2025 and Q1 2026. A financial overview was presented, covering results of operations and financial position as of June 30, 2025, noting trends in surplus, direct written premium, and ceded premiums, as well as improved non-catastrophe loss ratios. Further discussion centered on depopulation forecasts and incentives for private carriers to assume policies sooner. Finally, the committee was asked to approve the renewals for the Directors & Officers (D&O) policy, which showed a premium decrease, and the Cyber Insurance policy, which reflected a significant premium reduction.

This Strategic Plan for the Office of the Internal Auditor (OIA) at Citizens Property Insurance Corporation serves as a roadmap for 2025 and beyond, focusing on providing assurance, improving governance, managing risks, and enhancing organizational controls. The OIA aims to be an innovative driver for positive change, contributing to the corporation's strategic objectives through enhancing risk management, promoting strong governance, driving operational efficiency, ensuring compliance, and leveraging technology and data analytics. The plan aligns with the corporation's strategic imperatives of depopulation, customer experience, and minimizing emergency assessments, by integrating internal audit, enterprise risk management, and internal control functions.

The Finance and Investment Committee meeting covered several key topics. The financial advisor provided a comprehensive market update, noting inflation stabilization signals, low unemployment, the ongoing student loan forgiveness debate, and historical yield curve inversion suggesting a potential recession. Discussions also addressed the negative mark-to-market impact on the investment portfolio due to rising interest rates, though noting the unrealized loss is non-cash, and the significant expected increases in reinsurance rates following major weather disasters, particularly Hurricane Ian. Operational discussions included reviewing Layer Charts showing projected ultimate losses for Hurricane Ian and updates on the Coastal Account. Action items involved recommending approval for contracting with S&P Global Market Intelligence for bond rating services and seeking approval to contract with JP Morgan Chase for a Digital Bill Payment Solution, which is projected to save money. A consent item requested additional spend authorization for Remittance Processing due to policy growth, and the Committee Charter annual review was completed with no changes recommended.