Applied Experience. Applied Intelligence.
JUN 24, 2022
Applied Underwriters’ Centauri Insurance Reaffirms Commitment to Underwriting in Gulf Coast Market as Above Normal Hurricane Season Looms and Solvency Issues Beset Insurers and Diminish Availability
Result: ‘A’ rated Applied subsidiaries, inundated with submissions, continue to add to infrastructure to help sustain the market place and serve Gulf Coast brokers and their insureds as demand increases
Sarasota, Florida -- June 24, 2022 -- Despite a hurricane season predicted to be severe by several weather and risk management sources, Applied Underwriters and its Centauri Insurance subsidiaries (Centauri Specialty Insurance Co. and Centauri National Insurance Co.) have affirmed their commitment to underwriting in the Gulf Coast markets, while the effects of recent carrier insolvencies, voluntary and involuntary moratoria imposed by some stressed carriers and insufficient or late reinsurance renewals by many carriers all threaten the market. According to media reports, monoline insurers are at highest risk since they do not write multiple lines of business, as do larger entities.
By contrast, Centauri Specialty Insurance Co. and Centauri National Insurance Co. are writing new business after ending 2021 with good results, entering 2022 with its ‘A’ rating affirmed by Demotech, the national rating agency, and having its reinsurance treaties completed early enough to avoid capacity problems, according to Steve Menzies, Chairman of Applied Underwriters.
Mr. Menzies stated: “We are standing solid in the market for our many brokers and their insureds with no compromises in our financial integrity or product quality, as brokers and consumers anxiously seek coverage—often on tight deadlines for renewals and new policies. The demand created by other insurers' insolvencies and lack of adequate reinsurance financial backing is high, and our staff is meeting it efficiently, with an overall firm delivery commitment that will help sustain the market in the various states around the Gulf and serve our brokers and customers.
“Since acquiring Centauri, we have increased its infrastructural facilities, collaborating with Applied’s national operations platforms that are among the most sophisticated in the world. Applied's approach in every one of our insurance operations across the globe has been to create operational, informational, infrastructural and financial foundations that support our companies in every circumstance. We have set just such a construct at Centauri.”
Applied’s President, Jamie Sahara, cited some added pressure on Applied as potential problems in the marketplace come to light among other insurers, stemming from a general lack of availability of catastrophe reinsurance coverages “at any price” and from insolvencies in 2021 that continue in 2022: “It’s common sense. With so much demand, we only have so much capacity. Our first priority is to our renewal customers. So, we ask our agents to please understand that we’re going to have to moderate the flow of new business, and we recommend that they get their new business applications in as early as possible.”
Mr. Sahara continued: “Most of the monoline Gulf carriers were not able to complete their catastrophe reinsurance treaties, including Citizens, and many have suffered financially in recent past years, making my overall outlook for the industry in the Gulf states generally not optimistic; but, hopefully, we will see minimal hurricane activity this year so that many of our peers can catch their breath. Thankfully, we were prepared and had the advantage of a good 2021. We’re all set for 2022 with enhanced operational capabilities, so brokers may look to us with confidence.”
Citing a corollary trend that threatens the market across the Gulf states and elsewhere, Mr. Menzies called the conflict between some states’ legislative positions and the efforts of insurers and the departments that regulate them as a key element of the stress on the entire system: “Everyone involved in the provision of homeowners insurance works hard to keep the dikes from bursting even in the face of hurricanes and other catastrophic events, but invariably we find ourselves having to wrestle with state legislative measures that ceaselessly work to create a veritable bonanza for plaintiff’s lawyers. Legislatures are lobbied hard and wind up enabling predatory exploiters to extract billions from the system, profiting themselves but leaving the insurance market under extraordinary duress, even, to some degree, broken or, in some quarters, on the verge of collapse. Even all of the discipline and sophistication of Applied and its subsidiaries cannot perdure many more years of unjust awards and irrational, frivolous lawsuits. It is our hope that it ends soon and provides some additional strength to the market place. Our insureds in the Gulf states deserve better.”
For further information contact:
Ryan Gerding, Public Relations, at +1 (913) 602-8531 or at firstname.lastname@example.org.
About Centauri Insurance (www.centauriinsurance.com)
Centauri Specialty Insurance Company and Centauri National Insurance Company are rated ‘A’ (Exceptional) by Demotech. Formed in 2006 and based in Sarasota, FL, Centauri Insurance is a property and casualty insurance company licensed to serve policyholders in 10 states including Alabama, Florida, Hawaii, Louisiana, Massachusetts, Mississippi, North Carolina, Oklahoma, South Carolina and Texas. Centauri is well known for providing catastrophe coverage and for its ability to provide financial protection to its policyholders through innovative solutions and personalized service.
About Applied Underwriters (www.auw.com)
Applied Underwriters® is a global risk services firm that helps businesses and people manage uncertainty through its business services, insurance and reinsurance solutions. As a company, Applied Underwriters has been distinguished by its innovative approaches to client care and by its strong financial strength. Applied Underwriters operates widely throughout the US, UK, EU and Middle East. Its operational headquarters is located in Omaha, Nebraska.
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