Florida Insurance Commissioner Approves AmCOMP Merger, also Requires Company to Refund $8.4 Million in Excess Profits
TALLAHASSEE, Fla. – Florida Insurance Commissioner Kevin McCarty today announced that the Office of Insurance Regulation (Office) has approved
the merger of AmCOMP with Employers Holdings Inc. (Employers), and that the Office and AmCOMP have agreed to a consent order
that will require AmCOMP to repay $8.4 million in excessive profits to its Florida policyholders.
AmCOMP's insurance subsidiaries will repay $2.8 million in excessive profits it realized for accident years 2003, 2004 and 2005. It also will repay $5.6 million for excessive profits for accident years 2004, 2005 and 2006.
AmCOMP is an insurance holding company that specializes in workers’ compensation insurance for small- to mid-sized employers. Employers also is a holding company specializing in workers' compensation insurance for small businesses working in low-to-medium hazard industries. The AmCOMP merger with Employers is expected to be completed in late October.
Workers' compensation insurers are required to return profits in excess of 5 percent as set forth in Section 627.215, Florida Statutes. The Office evaluates data that includes, among other things, earned premium and incurred losses to determine if the insurers realized an excess profit for the three most recent calendar/accident years reported.