Declarations – South Central

Painful Spending

“Nobody likes to have to spend $104 million. … It’s pretty painful, but it won’t put us out of business.”

—Richard Robertson, CEO of Louisiana Citizens Property Property Insurance Corp. Citizens recenlty paid a $104 million judgment in a long-running class action lawsuit over slow claims handling after Hurricanes Katrina and Rita in 2005.

A Darwinian Evolution

“None of us anticipated 10, even five years, ago that the government would get so deep into our pockets.”

—Hank Watkins, president of Lloyd’s America Inc., told attendees at the Western States Surplus Lines Conference in July that one of the big issues for Lloyd’s is the Solvency II directive that codifies European Union insurance regulation. Eighty-eight Lloyd’s syndicates must meet the new standards, which Watkins said will make the market’s operating environment more difficult. Regulation, along with changes in technology, is prompting a Darwinian evolution of the industry, including Lloyd’s, he said.

A Deadly Scene

“This is the most people I’ve seen in any passenger vehicle, and I’ve been an officer for 38 years.”

—Gerald Bryant, a spokesman for the Texas Department of Public Safety, said 23 passengers were crammed inside the cab and bed of a 2000 Ford F-250 pickup when it crashed while heading north on U.S. 59 southeast of San Antonio on July 22. Eleven people were killed at the scene and the death toll rose to 14 in the days following the incident. Authorities believe the truck’s right front tire came apart and caused the vehicle to veer off the rural highway.