State Farm drops plan to withdraw from Fla. property insurance market, obtains rate increase

State Farm drops plan to withdraw from Fla. market

TALLAHASSE, Fla. — State Farm Florida has dropped plans to withdraw from Florida’s property insurance market.

Florida Insurance Commissioner Kevin McCarty on Wednesday announced a settlement with the insurer that includes a 14.8 percent rate increase.

State Farm Florida, the state’s largest private homeowner insurer, will also be allowed to not renew 125,000 of its 810,000 policies.

The subsidiary of Illinois-based State Farm Insurance had announced it would withdraw from Florida after McCarty rejected a 47.1 percent rate hike. Company officials had said a large increase was needed to remain financially viable in the hurricane-prone state.

State Farm Florida President Jim Thompson said Wednesday’s settlement would allow the company to stabilize its financial condition.