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Citizens Exploring Move From Local Government Investment Pool

Citizens Property Insurance Corporation, Florida’s state-run property insurer, is exploring a reduction in its investment in the State Board of Administration’s Local Government Investment Pool, the fund that has been destabilized by recent withdrawals. Citizens currently has nearly $2 billion invested in the Pool, about $1.7 billion in Part A, which was recently reopened for withdrawals, and about $260 million in Part B, which remains closed to withdrawals. Including its investment in the Pool, Citizens has about $7 billion invested with the State Board of Administration. At its meeting on December 6, 2007, the Citizens Board of Governors discussed the need to diversify their holdings and reduce Citizens’ involvement in the Pool in order to meet its investment policy that one fund contain no more than ten percent of its holdings.