Citizens seeking increased credit for storm season
BATON ROUGE - The governing board for Louisiana's property insurer of last resort wants to boost its bank line of credit, to give the company enough wiggle room to cover costs in case of a storm.
The Louisiana Citizens Property Insurance Corp. approved a proposal Wednesday to increase its line of credit with Regions Bank from $75 million to $125 million. The decision also needs backing from the State Bond Commission.
Steve Cottrell, chief financial officer for Citizens, says the increase will give the company financial protection through hurricane season.
The move comes after a $100 million borrowing plan stalled at the state capitol, despite concerns about a looming shortfall because company expenses are projected to be larger than revenue.
Citizens' board also approved a $275,000 salary for its new CEO, David Thomas.