The ownership of Northern Capital Insurance, Inc. (a holding company) has successfully formed Northern Capital Insurance Company and is in the process of raising additional capital to take advantage of the lucrative homeowners insurance market that presently exists in Florida. The company is a stock corporation authorized to write property and casualty insurance in the state of Florida. In July of 2004, the Board of Directors of Northern Capital Insurance, Inc. submitted the Northern Capital Insurance Company "Application For Permit" to become a domestic insurer with the Florida Department of Financial Services. The "Permit" was approved on October 12, 2004 and once the appropriate financing is committed, an application for a Certificate of Authority will be submitted to the state of Florida. It is anticipated that the insurance company will be formed, funded, approved and issuing homeowners policies in Florida during the second quarter of 2005.