Copyright 2009 A.M. Best Company, Inc.All Rights Reserved BestWire

February 20, 2009 Friday 04:37 PM EST

318 words


Allstate Encompass Leaving Florida Property Insurance Market

Chad Hemenway

NORTHBROOK, Ill.

Encompass Floridian Insurance Co., a member of Allstate Insurance Group, is sending letters to policyholders informing them that the insurer is pulling out of the property insurance market in Florida.

Encompass' filing to withdraw from the market actually came before State Farm Florida's similar request on Jan. 27. Encompass companies -- Encompass Floridian Indemnity and Encompass Insurance -- have only about 11,100 policies while State Farm Florida is leaving behind 1.2 million property insurance policies.

"After offering residential insurance in Florida for several years, we have decided we can no longer continue to do so and will no longer offer this type of insurance in Florida," reads a letter from Encompass to policyholders. The letter was filed with the Office of Insurance Regulation, which approved the withdrawal on Jan. 22.

Encompass Insurance informed its agents in December that the company will no longer write new homeowners and dwelling fire property business in North Carolina "due to the rapid growth of North Carolina's Beach Plan, and the Beach Plan assessment process" (BestWire, Dec. 5, 2008).

State Farm Florida said in late January it planned to withdraw from the property insurance market in Florida by 2011. The plan was approved by Insurance Commissioner Kevin McCarty, but with certain conditions. State Farm Florida has 21 days to reply to the conditions.

Encompass Floridian Insurance Co. currently has a Best's Financial Strength Rating of B+ (Good).

In 2007, the top five writers of homeowners multiperil in Florida, according to A.M. Best Co. state/line product information based on direct premiums written, were: State Farm Group, with a 21.3% market share; Citizens Property Insurance Corp., with 20.5%; Universal P&C Insurance Co., with 6.1%; USAA Group, with 5.2%; and Tower Hill Group, with 4.4%.

(By Chad Hemenway, associate editor, BestWeek: Chad.Hemenway@ambest.com)

February 21, 2009

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