Mr. DeRosa has significant experience in forming and operating "take-out" property and casualty insurers writing homeowners insurance
"We're at the mercy of the reinsurance community," says Philip DeRosa, president and CEO of Gulfstream Property and Casualty of Sarasota, which is seeking a 57 percent rate hike.
Gulfstream initially intends to take out about 70,000 policies from Citizens, DeRosa said, with an agreement to take out a total of 120,000 policies over 18 months.
Capital and surplus: $13.9 million
Gulfstream Property and Casualty Insurance Co., Sarasota Takeout policies: 79,617
two of the Hanover Insurance companies will be leaving the state June 1, but he has worked with the company to find a replacement to keep existing policies in effect.
Donelon said that the 5-year-old Gulfstream Property and Casualty Co. of Sarasota, Fla., will assume about half of the 14,000 policies now insured by three Hanover companies.
Donelon said Hanover decided to bring in Gulfstream as a partner to take over the estimated 7,000 policies written by Massachusetts Bay and Hanover. The third company, Hanover American will continue to insure about 7,000 policyholders, the less risky ones, he said.
Since Hurricane Katrina, many companies have sought to reduce their risk by dropping newer policies, getting rid of wind coverage or requiring people to pay higher deductibles in the event of a storm. The only major homeowners insurer that has pulled out of the state since Katrina is Auto Club Family Insurance Group, better known as AAA.
Net Underwriting Gains:
Underwriting PROFITIBALITY has steadily decreased since 2010.
As I said before, these no-name companies are not companies you want to go with. They are take-out companies who write the majority of their business with homeowners who live in horrible risk areas and who have had multiple losses in the past. This equates to these companies going belly up as soon as the next major hurricane hits. Reinsurance can't and won't bail them out and they ultimately will have to leave the state, go belly-up, or get bought out by another company and undergo a name change. 75%-90% of the time, this action leaves the policy holders shopping for new insurance at a time when NO major company (State Farm, Allstate) is writing business in your area. You are forced to go with another no-name company because they are the only ones writing business in your area after the catastrophe. It's a never-ending cycle.
That's IF they do cover your damage caused by a named storm. Lots of times they will find reasons to not pay it.
As I said before, y'all can choose to believe me and laugh at me if you want, but you're the ones with these types of companies.
Farmers is a medium-sized company compared to State Farm and Allstate and even they couldn't stay in Louisiana for the long-haul. That should tell you something...
This post was edited on 2/27 at 9:15 am