Secura Insurance departs from Personal Lines

[Al3x Lee]

It's gonna be fine - everyone needs insurance.
It's gonna be fine - everyone needs insurance.
It's gonna be fine - everyone needs insurance.

Right, right... this chart surely isn't a problem. Also, is that you riding a rocket ship to the moon?

 

[fed up]

Allstate just laid off another load.

 

[shawnmwalker]

I would ask for a graphic of me riding to the moon, But I Already have a few!

 

[NY independent]

Don't forget about Kemper going out. I too predict more failures but on a grand scale. I'm talking about federal bailouts and there will be little to no warning. The mutual carriers don't disclose and AM Best is always late to the game. Private equity is staying away (except for Allstate). A perfect storm is coming soon. I hope I'm wrong and apologize for being a downer.

 

[Mkmcd]

100% more to come. The Regionals are not protected! Germania is a huge TX regional. Secura, Regional. OR Mutual, Regional! We have at the very least a rough year ahead.

IMT Insurance out of West Des Moines, IA currently has a moratorium on new homeowner business in Iowa. They are making it hard to write any new auto business as well. The CEO recently released a video that they are commited to personal lines. We'll see.

 

[Juannywags]

Private equity is staying away

They may be staying away from carriers but they are heavily involved in buying agencies right now.

 

[Gulliver]

Pekin has made major changes too. Badger has been downgraded to a C+ as of Friday. They were still A- as recently as last December. Cameron in MO has folded. MAX Mutual out of KS has folded as United Home in Arkansas has folded. This is 1929 in the Midwest.

 

[Allen Trent]

Surprisingly, Secura only has a total of $4M in personal lines in Michigan. Can definitely see why they left Michigan on that little of personal lines. Likely cant cover the labor needed to price & reunderwrite & process claims. Even if they could have an awesome combined ratio of 90% , $400k profit cant cover the state specific rating/underwriting/claims/reinsurance. And that is at 90% combined, not a 120-140% like they likely had the past 2 years

 

[Gulliver]

Surprisingly, Secura only has a total of $4M in personal lines in Michigan. Can definitely see why they left Michigan on that little of personal lines. Likely cant cover the labor needed to price & reunderwrite & process claims. Even if they could have an awesome combined ratio of 90% , $400k profit cant cover the state specific rating/underwriting/claims/reinsurance. And that is at 90% combined, not a 120-140% like they likely had the past 2 years

This is a reinsurance problem now. Companies simply do not have the level of reinsurance that they used to. They are exposed so badly that they have to get off of business to right the ship. Secura is a very good company, but they run the risk of a downgrade if they don't lower their insurance in force. Most don't realize how bad the reinsurance situation is this year. Insiders are telling me that most regionals are nearly 30% underinsured in their contracts this year and don't see much improvement for 2024.