Homeowners Insurance Financials - can I trust this company?

[IslandGrl]

I live in a popular coastal area and my agent is offering me a policy underwritten by a local 2 year old company. I've looked at the financials and while I'm a complete neophyte in this area, I'm not impressed. Can someone offer me any promising insight on these numbers?

Second question: What financial grading companies are to be trusted? If I'm not mistaken, A.M. Best rated AIG fairly well, and we all know how that went.


Financial Summary

Reporting
Period 3/31/2021 12/31/2020 12/31/2019
Net Admitted Assets $9,351,163 $8,306,640 $7,750,539
Policyholders Surplus $6,099,995 $6,024,266 $6,957,068
Gross Premiums Written $3,865,920 $10,076,062 $637,559
Net Premiums Written $786,044 $222,220 ($98,763)

 

[marindependent]

Wow, quite the detailed question - are you seriously a consumer?

The first and most important consideration is if the insurer is an admitted insurer in the state of the policy? If they are, I would just consider AM Best's FSR, understand the state guarantee plan, and be done with it.

If they are not, then a more detailed review might be required. But frankly I don't know that you are going to find a lot of detailed financial anyslis on of PHSs and such on this forum.

An in depth review of a companys FSR is problably more important with life [esp cash value] and annuties than with homeowners insurance, in my opinion. [I mean you are buying this thing for a year.] And analysizing property risks is also in part more about locations and the spread of risk than just pure financials. As an example how much of a a given property insurer's exposure is to any one given state or area where a single hurricane can take them out? That is not to say that I would ignore an insurers Financial Strength Rating.

Also a two year old company's numbers are not much of a trail to go off of.

Lastly if this property is a difficult to write area and no standard policies are available - these are often the only options that are available.

Best of Luck

 

[fed up]

Coastal area of what state? Makes a huge difference as far as carriers and coverage goes. Your Homeowners premium could be less than your flood premium depending on recent storms and losses.

 

[IslandGrl]

Wow, quite the detailed question - are you seriously a consumer?

The first and most important consideration is if the insurer is an admitted insurer in the state of the policy? If they are, I would just consider AM Best's FSR, understand the state guarantee plan, and be done with it.

If they are not, then a more detailed review might be required. But frankly I don't know that you are going to find a lot of detailed financial anyslis on of PHSs and such on this forum.

An in depth review of a companys FSR is problably more important with life [esp cash value] and annuties than with homeowners insurance, in my opinion. [I mean you are buying this thing for a year.] And analysizing property risks is also in part more about locations and the spread of risk than just pure financials. As an example how much of a a given property insurer's exposure is to any one given state or area where a single hurricane can take them out? That is not to say that I would ignore an insurers Financial Strength Rating.

Also a two year old company's numbers are not much of a trail to go off of.

Lastly if this property is a difficult to write area and no standard policies are available - these are often the only options that are available.

Best of Luck

Yes I'm a consumer! And you have voiced my primary concern -- concentrated hurricane risk. The area is difficult to write, I am told. Thanks for your insight - I'll need to weigh my options.

 

[IslandGrl]

Coastal area of what state? Makes a huge difference as far as carriers and coverage goes. Your Homeowners premium could be less than your flood premium depending on recent storms and losses.

Located in NJ, flood is reasonable but my concern is hurricane and the small local area of risk that the company has undertaken. Should something catastrophic happen, will they have the assets to pay the losses? Is there another entity that steps in , should the company default?

 

[marindependent]

Is there another entity that steps in , should the company default?

Is it an admitted insurer? What is the name of the insurance company?