The Florida Office of Insurance Regulation denied a rate filing submitted by The Travelers Companies Inc.

The office sent Travelers a notice saying the proposed rate hike was not actuarially justified and lacked supporting information, according to a release.

Travelers had originally proposed a statewide average rate increase of 4.6 percent for its homeowners business in Florida based on a computer-generated hurricane loss model that was not approved by the Florida Hurricane Loss Projection Methodology Commission. Regulators' review of the filing showed that Travelers' rates should actually decrease by a statewide average of more than 11 percent, the release said.

Earlier this year, Travelers' decreased its rates by a statewide average of 8.3 percent in response to legislation passed during January's special legislative session, which provided less expensive reinsurance from the state, the release said. Insurance companies buy reinsurance to cover catastrophic losses, like those often caused by major hurricanes that exceed what they could pay out on their own.

The four Travelers companies included in the filing were Travelers Indemnity Co., First Floridian Auto and Home Insurance Co., Travelers Indemnity Co. of America, and Phoenix Insurance Co.

Statewide, the Travelers companies insure approximately 75,000 residences, and collect $132 million in annual premium.

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