American Coastal Insurance Corp., based in St. Petersburg, has undergone significant leadership changes following action by Florida regulators to enforce a 2002 state law aimed at barring officers of insolvent insurers from key roles in other carriers.
Officials from Florida’s Office of Insurance Regulation (OIR) disclosed on Thursday that several officers and directors at American Coastal, previously known as United Property & Casualty Insurance (UPC) before its 2023 insolvency, have been either removed or reassigned. The changes were indirectly confirmed by American Coastal in a recent news release.
In 2023, OIR notified 12 individuals at American Coastal, the largest number at any Florida insurer, that they must justify their continued positions or accept reassignment under Statute 624.4073. These executives had held pivotal roles at UPC before its collapse.
Samantha Bequer, OIR’s communications director, explained that while all 12 were initially under scrutiny, OIR recently granted a 90-day extension to facilitate compliance without disrupting operations entirely.
“They have replaced approximately half of those on the list, or moved them to different roles,” Bequer noted on Thursday regarding American Coastal.
Further updates on American Coastal and other affected insurers are expected next week, according to Bequer.
In a June 25 press release, American Coastal announced a reduction in its board size from 10 members to five. The company also hinted at new leadership, identifying Christopher Griffith, formerly Chief Information Officer and Chief Operating Officer, as the new President, while acknowledging Brad Martz’s continuing role as President.
Martz and Griffith both received notifications from OIR regarding potential disqualification due to their tenure at UPC.
The press statement did not specify reasons for the recent changes, and inquiries from Insurance Journal to American Coastal leadership went unanswered. However, it confirmed that at least five former board members are no longer serving, all of whom were previously associated with UPC and are on OIR’s restricted list.
New additions to the board include Sherrill Hudson, Patrick Maroney, James Andy Gray, Deirdre Brown, and Cathy Swanson. Additionally, new officers named include Svetlana Castle as Chief Financial Officer and Andy Gray as Chief Compliance and Risk Officer, according to American Coastal.
The statuses of Dan Peed, Chair and CEO, and Brooke Adler, General Counsel, both listed by OIR, were not specified in the company’s statement.
The state law focuses on executives who held positions at troubled insurers up to two years before insolvency, allowing some current American Coastal officials to remain depending on their specific timelines with UPC.
The statement also introduced two new board nominees pending regulatory approval: Cathy Swanson, with 40 years in banking and affiliated with Cogent Bank in St. Petersburg, and Deirdre Brown, a certified public accountant formerly at TECO Energy in Tampa.
This development is part of OIR’s broader enforcement actions, affecting over 20 officers across more than 10 Florida insurers. Critics argue that the law, rarely enforced until recently, unfairly targets individuals amid broader industry challenges such as hurricane impacts, claims litigation, and rising reinsurance costs.
Melissa Burt DeVriese, President of Security First Insurance, based in Ormond Beach, defended executives caught in this enforcement, noting they were striving to manage successful companies rather than court failure.
Security First itself faced OIR scrutiny over an officer formerly with Lighthouse Insurance Co., declared insolvent in 2022. DeVriese emphasized the human impact of such actions on careers and families, urging regulatory clarity for affected individuals.
Despite legislative efforts to mitigate financial vulnerabilities stemming from past insolvencies, uncertainties linger for affected individuals and insurers awaiting regulatory decisions.
