Michael Maglaras & Company Secures $25 Million from Connecticut for Crumbling Foundations Crisis

Michael Maglaras & Company has secured an additional $25 million in capital from the State of Connecticut for the Connecticut Foundation Solutions Indemnity Company (CFSIC), a Connecticut-domiciled captive insurer addressing the state's crumbling foundations crisis.

"Mike Maglaras has shown that captives can provide innovative and successful solutions during severe property insurance crises," said Connecticut State Representative Jeff Currey.

"CFSIC is a unique public/private captive model and is serving as an example throughout the world of how captives can be utilized to address property insurance concerns, including those stemming from the climate crisis," according to Steve Werbner, chair of CFSIC's board.

Mr. Maglaras has raised more than $194 million from the state to date, with CFSIC nearing the milestone of serving 1,000 families. "Whenever the commercial insurance market cannot or will not respond, captives have historically been nimble and creative vehicles to address risk," Mr. Maglaras added.

Todd DeStefano, senior vice president at ESIS, reported, "We are so pleased to be part of Mike's team in helping to deliver this property insurance solution utilizing a captive vehicle. Mike is a true visionary captive leader, and we are gratified to have been selected to provide the victims of this crisis with hands-on claims management and adjustment expertise."

Mr. DeStefano of ESIS praised Mr. Maglaras as a visionary leader, highlighting the importance of their collaboration in delivering this solution.

An additional $11 million is expected within the next 30 days from a surcharge on Connecticut homeowner insurance policies, according to a statement from Mr. Maglaras' firm.