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FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 20, 2023 04:32 PM (EDT)
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.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.