Florida's homeowners insurance companies will make about 17 percent more profit in 2007, according to the Insurance Information Institute.

Benefiting from a second year of storm-free weather, homeowner insurers overall underwriting profit in Florida in 2007 should increase by 17 percent to $3.4 billion, an industry economist predicted Thursday.

Robert Hartwig, the president and chief economist of the group representing the insurance industry, said the good weather combined with higher rates lead to the increase in profit.

The industry made a combined $2.96 billion in 2006 in Florida. The results do not include earned investment income. The predicted results only take into account money made by insurers from the sale of the specific product in the state — homeowners insurance.

The profits come after a $9.3 billion underwriting loss for insurers in Florida in 2004 and a $3.77 billion underwriting loss in 2005.

Hartwig argued Thursday that homeowner rates need to remain high because Florida is at increased risk of being hit by other major hurricanes over the next ten to 20 years.

-------------------------------------------------------------------------------------------

Copyright 2007 The Palm Beach Post. All rights reserved.

Presented by InsuranceHeadlines.com