OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has commented that the Credit Ratings (ratings) of SECURA Insurance Company and its affiliates, SECURA Insurance Company and SECURA Supreme Insurance Company, remain unchanged following its announcement today that it is exiting the personal lines insurance market in an estimated two-plus year process. These companies are collectively referred to as SECURA and domiciled in Neenah, WI.
Effective Nov. 1, 2023, subject to legal and regulatory requirements, SECURA will no longer accept new home and auto insurance clients. Over the coming two years, the company will non-renew existing personal lines business according to all applicable state regulations, in order to achieve a complete exit by Dec. 31, 2025. SECURA’s personal lines policyholders will receive a notice of non-renewal 60 days prior to their policy effective dates.
AM Best views SECURA’s move as credit positive, as personal lines operations have been the most affected by catastrophes and inflation, contributing to significant underwriting losses in both homeowners and private passenger auto lines. A successful exit from personal lines business should also position SECURA for longer-term profitability. However, this development will take time to implement, and will not have a significant immediate effect in the coming months.
SECURA’s underwriting results in the personal lines business have recently been impacted by weather-related events, sharply increased ceded reinsurance costs and insufficient underlying premium rates, all of which have contributed to underwriting losses in 2022 and 2023. AM Best will continue to monitor SECURA’s execution of the present initiative in connection with the evolving impact on the company’s credit profile.
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