Heritage Insurance CEO in FL Makes $27.3 Million

Jun 28, 2016

  1. Brian Anderson
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    Brian Anderson Executive Editor

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    Article says Heritage Insurance in FL is raising homeowners insurance rates by an average of about 15% (despite no big claim events) while its CEO's compensation now tops $27.3 million. And people aren't happy about it???

    From the article (linked below):

    A fast-growing but untested insurer wants South Florida homeowners to tighten their belts and pay up to 25 percent more — even as Heritage Insurance Holdings Inc. CEO Bruce Lucas has nearly quadrupled his compensation in one year to a whopping $27.3 million, records reviewed by The Palm Beach Post show.

    That represents more than 50 times what the CEO gets paid at larger, state-run Citizens Property Insurance Corp., where Heritage got most of its customers on its way to becoming one of the state’s five largest property carriers.

    “People are living paycheck to paycheck and this guy is making $27 million,” said Ken Schurr, a Coral Gables attorney who represents policyholders against insurance companies. “It’s not right.”

    After all, Heritage has never experienced a hurricane and its claim losses have been falling, not rising, as a share of premiums, he said. Yet it wants homeowners to fork over a statewide average rate hike of 14.9 percent.


    Rate hike 'greedy'? Heritage CEO paid $27m, 50 times Citizens CEO | www.mypalmbeachpost.com
     
  2. FL P&C Broker
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    FL P&C Broker Guru

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    Loss ratios are not down in Florida, they are up. Everybody is taking rate and I believe it will lead to the end of a soft market.
     
  3. insurance1822
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    insurance1822 Guru

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    Good for him. I'd do the same thing.
     
  4. BigSteve
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    BigSteve Super Genius

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    *sigh* In the "Welfare State" which has some of the poorest and some of the wealthiest towns in the country all within 25 minutes of me, I hear people bitch about how much CEOs make. I tell them this, if you want to make $27 million a year too, then go to school, work your ass off, get post graduate degrees from the best business schools, be at the top of your class, and work your ass off. Nobody just gets handed a $27 million a year job. If he has to raise rates to make sure that the company is profitable, than he is doing his job and getting paid what he was able to negotiate.
     
    BigSteve, Jun 30, 2016
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  5. shawnmwalker
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    shawnmwalker Guru

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    That is quite the salary for such a small carrier.
     
  6. indienoise
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    indienoise Guru

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    They just entered sc and I'm supposed to be seeing a rep next month. This is not a headline I want people asking me about, though.
     
  7. Brian Anderson
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    Brian Anderson Executive Editor

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