Louisiana Citizens Property Insurance Company is the state’s residual market providing property insurance to homeowners and businesses that have been unable to procure insurance in the private market. Louisiana Citizens came out of the 2005 hurricane season nearly $1 billion in debt from Hurricane Katrina and Rita losses. As reflected in the attached graphic, Louisiana Citizens appears to have transformed itself into a leaner, financially disciplined, and well governed organization. While it has yet to publish estimated losses from Hurricane Ida, there appears little chance of a similar financial hole opening in Louisiana Citizens’ balance sheet this year. A graphic overview of this article is available here.

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Resources to Finance 2021 Catastrophe Losses
Louisiana Citizens Property Insurance Company
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Better Insurance
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Louisiana Citizens Property Insurance Company
2021 Claims Paying Capabilities
Before Hurricane Ida struck, Louisiana Citizens Insurance Company
had about $162 million of policyholder surplus (capital).
Policyholder surplus represents the ability to pay future claims
including support for continued insurance operations.
Louisiana Citizens issued $978.2 million in bonds
in 2006 to pay Hurricane Katrina claims. 15 years
later $336 million remains outstanding.
The State has dramatically reduced the surcharge
burden on Louisiana policyholders through a
series of offsetting income tax credits.
Emergency Assessments
(up to $267 million annually)
$35 million Retention
Includes $200 million in
catastrophe bond capacity
Catahoula Re Pte.
Ltd. (Singapore)
Pelican Re IV Ltd.
(Bermuda)
Pelican Re IV Ltd. (Bermuda)
$260 million
One-Time Regular Assessment
$560 million Reinsurance Program
Repayment of
Principal with Interest
Proceeds of Sale of Bonds
Louisiana Licensed
Property Insurers
Private Market
Policyholders
Assessment-Backed
Revenue Bond
Policy
Surcharges
Annual Assessment of
Surcharge Collections
Immediate Assessment with
Recovery by Surcharge
Louisiana Citizens
Policyholders
Policy Premiums
Market Equalization Charges ensure
Louisiana Citizens policyholders pay the same
surcharges as private market policyholders At the time of Hurricane Katrina, Louisiana Citizens insured
135,000 policyholders and was the third largest property insurer in
the state. It carried about $300 million in reinsurance.
Today, Louisiana Citizens insures about 36,000 policyholders
backed by more than $500 million in reinsurance and representing
less than 1.5% of Louisiana’s property insurance market.