If its plan is approved by state regulators, Hanover Insurance Group will shift more than half of its policies in Louisiana to Gulfstream Property and Casualty Insurance Co.
Hanover spokesman Michael Buckley said the company's "intention is to shift our capacity to write homeowners business in the state to a select group of agent partners with whom we write a significant amount of business across multiple lines."
Based on direct premiums written, Hanover is the 10th-largest writer of homeowners multiperil in Louisiana with about 2.3% market share, according to BestLink, which provides online access to A.M. Best's Global Insurance & Banking Database. Hanover has about 15,500 polices in Louisiana, and the company expects to retain slightly less than half, said a company spokeswoman.
Buckley said Gulfstream will offer replacement coverage for each policy Hanover does not renew. Replacement policies would be for about the same coverage at the same price, he said. The insurer is not leaving the property market in Louisiana and Hanover's plans do not affect its commercial or personal automobile lines, Buckley said. Hanover continues to work with the Louisiana Department of Insurance on the plan.
"We intend to maintain a meaningful presence in this market going forward and plan to continue to write new homeowners business," Buckley said.
Gulfstream is a Florida-licensed homeowners insurance company that began in November 2004. According to its Web site, the company is headed by President and Chief Executive Officer Mitch Sattler, who joined Gulfstream in May 2009. Sattler had worked for 14 years with Risk Management Solutions Inc.
Attempts to reach Louisiana Insurance Commissioner Jim Donelon were not immediately successful.
The Hanover Group of Property and Casualty Cos. currently has a Best's Financial Strength Rating of A (Excellent).
According to BestLink, the top writers of homeowners multiperil in Louisiana in 2008, based on direct premiums written, were: State Farm Group, with a 30.4% market share; Allstate Insurance Group, with 16.7%; Louisiana Farm Bureau Mutual Insurance Co., with 6.4%; Farmers Insurance Group, with 6.3%; and Liberty Mutual Insurance Cos., with 6.3%.
(By Chad Hemenway, associate editor, BestWeek: Chad.Hemenway@ambest.com)
