Another insurer's withdrawal to affect thousands in state

American National is the latest home insurer to withdraw from California, citing persistent unprofitability in the state.

The Texas insurer filed documents with the California Department of Insurance to withdraw from the homeowners insurance business starting this fall, a company spokesperson told the Chronicle.

As of December, American National insured 36,475 homeowners policies in California worth about $37.9 million in premiums, according to the spokesperson.

"This action is driven by significant and persistent profitability issues in the Homeowners insurance market," the spokesperson said in a statement. "As many other companies are experiencing, multiple factors have made it difficult to be profitable in this business, including inflationary pressures driving up costs, increasing claims frequency and competitive market conditions. We expect these factors to persist into the foreseeable future."

American National is also planning to withdraw from eight other states, according to the spokesperson: Arkansas, Colorado, Louisiana, Minnesota, Oklahoma, South Carolina, South Dakota and Washington.

The exact timing of American National's withdrawal is tentative, according to the company. The spokesperson said all affected clients will get a letter about the withdrawal followed by a formal nonrenewal notice.

Reach Megan Fan Munce: [email protected]