October 2, 2022

2009 Industry Outlook

Banking & Finance 2009

'The Good Years in Banking are Over': Financial institutions will be watching pennies as the industry shakeout lingers.

Mike Vogel | 1/1/2009

VC: Very Cautious

Craig Burson
Venture capitalist Craig Burson:
‘The IPO market is essentially dead.’
“I think we all expect ’09 to be pretty tough for a lot of companies,” says Craig Burson, managing director of venture capital firm H.I.G. Ventures in Miami and chairman of the Florida Venture Forum. For the most part, VCs no longer are funding startups and early-stage companies. Instead, they’re concentrating on companies with a product developed, revenue and ideally some earnings. “The IPO market is essentially dead,” he says, and with debt markets so troubled, leveraged buyout deals will slow. Burson says reservations for the 2009 Florida Venture Capital Conference on Feb. 3-4 at the Naples Grande Beach Resort indicate a strong year for attendance, perhaps a record.

Rate Rise on the Home Front

Property insurance rates, kept artificially low by state law for customers of state-subsidized Citizens Property Insurance and for private company customers by below-market backup insurance, will be rising in 2009. After Gov. Charlie Crist and the Florida Cabinet saw that the state’s catastrophe fund — the backup insurer for Citizens and private sector property insurers — wouldn’t have been able to sell enough bonds to meet its obligations in the event of a monster storm because of the credit crisis in 2008, some shifting back of the risk to more expensive private reinsurers seems inevitable. “It will probably be more expensive than the state was able to sell (CAT fund reinsurance). The way the state has been dealing with this has been not allowing private companies or Citizens to pass along the cost of reinsurance in rates,” says Gary Landry, vice president of the Florida Insurance Council, an industry group.

Tags: Business Services

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Florida Trend Video Pick

Ransom Everglades School students test their experiment to be carried by NASA rocket
Ransom Everglades School students test their experiment to be carried by NASA rocket

A NASA-sponsored rocket will carry an experiment devised by physics students from Ransom Everglades School to the edge of space. See how they tested their experiment.

Video Picks | Viewpoints@FloridaTrend

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