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Observations and musings on Jacksonville Politics

Wall Street Journal Slams Crist

Gov. Charlie Crist may be riding high with a 73% approval rating, but the conservative Wall Street Journal is less than impressed. The Journal refers to Crist as Florida’s “Unnatural Disaster”—specifically, his voter-pleasing but financially unstable insurance plan which basically puts taxpayers, not insurance companies, on the hook for any future natural disasters.

The Journal points out the obvious—how can an insurance company with $3.4 billion in net assets possibly handle more than $400 billion in total exposure? It’s a question we should all be asking.

Read the entire article here.

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Filed under: Florida, Florida Politics, , , , ,

One Response - Comments are closed.

  1. g8rluvr says:

    I’m on the other side of the issue on this one. No thanks to a little fiction that the insurance companies are allowed to form a company specifically for each state so that profits and losses are measured against that one fictional company’s assets – and not the entire company assets.

    Here’s the real info on State Farm:

    March 2007

    State Farm Insurance’s chairman and CEO received an 82 percent raise after the company posted a record profit last year, a statement from the Bloomington-Ill.-based insurer said this week.

    Chairman and Chief Executive Officer Ed Rust Jr. got a $5.26 million raise. He earned $11.66 million in 2006 with a base salary of $1.77 million and results-based bonus of $9.89 million, the statement said. Rust made $6.4 million in 2005 and $5.5 million in 2004.

    The absence of a major catastrophe helped the insurer generate a record $5.32 billion profit last year, compared to $3.24 billion in 2005 when Hurricane Katrina hit the Mississippi Gulf Coast, release said.

    http://www.insurancejournal.com/news/national/2007/03/07/77498.htm

    Did you notice the article said that State Farm still made $3.24 billion (!) in profits the year Katrina struck the Mississippi Gulf Coast?

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