Farmers Insurance

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The non-renewals would have impacted Georgia homeowners with roofs over 15 years old, said Insurance Commissioner John King, calling it a “blatant violation of Georgia law”.

Farmers Insurance becomes the latest major national carrier to pump the brakes in California, limiting new business to only 7,000 policies per month, signaling further problems in the state’s homeowners’ market.

The news comes just over a month after two other large carriers, State Farm and Allstate, announced that they’d no longer accept new business in the state.

Continuing rises in loss frequency and severity plus a difficult regulatory framework make the situation in California highly challenging for carriers.

Personal lines rates ticked up in April compared to the prior month as insurers try to stay ahead of rising loss costs.

High-impact rate filings in California have driven increases nationwide.

In tandem, the ratings agency affirmed its "A" issuer credit and financial strength ratings on Farmers and its core operating subsidiaries.

He will also join the board of directors on January 1, while predecessor Jeff Dailey will remain as board chairman.

Claims analysis shows slow reactions to negative trends can affect several quarters, but carriers who emerge strong will be able to pursue growth faster than the competitors who are always playing catchup on loss cost trends.

The deal’s exposures are focused in the troubled personal auto market where loss costs have been running ahead of rates.

The carrier's first cat bond featured a new subrogation extension mechanism.