Make sure all policy holders know the company is basically bankrupt. TdI knew they would fold if there was another cat of any kind. who is buying…maybe progressive
I am a Shelby agent, in process of replacing all my Shelby business. It is a shame that a company which was once one of the best could go down the tubes. There had to be gross mismanagement.
I doubt it was gross mismanagement. It was gross mis-underwriting because for a while in Texas they didn\’t care what claims you had, or how close you were to the coast, they wanted the business.
Vesta / Texas Select going broke shouldn\’t surprise any experienced agent that checked out Texas Select to start with. I was offered a contract with Texas Select in the fall of 2002 and declined the offer because of their weak financial setup. I had a terrible experience with another carrier in a similar situation about 20 years ago and have since then made sure that I obtain contracts only with financially sound carriers. The only reason that Texas Select started off with a decent financial rating is because Vesta backed them and they didn\’t have enough IBNR at the time to matter. The TDI was also desperate to get carriers in the state to provide capacity due to Farmers not writing at the time. Texas Select underwiters did a terrible job of charging actuarilly sound premiums to offset future losses. Vesta has basically been buying a book of busines and hoping they would be lucky. Ha!
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Make sure all policy holders know the company is basically bankrupt. TdI knew they would fold if there was another cat of any kind. who is buying…maybe progressive
I am a Shelby agent, in process of replacing all my Shelby business. It is a shame that a company which was once one of the best could go down the tubes. There had to be gross mismanagement.
I doubt it was gross mismanagement. It was gross mis-underwriting because for a while in Texas they didn\’t care what claims you had, or how close you were to the coast, they wanted the business.
Vesta / Texas Select going broke shouldn\’t surprise any experienced agent that checked out Texas Select to start with. I was offered a contract with Texas Select in the fall of 2002 and declined the offer because of their weak financial setup. I had a terrible experience with another carrier in a similar situation about 20 years ago and have since then made sure that I obtain contracts only with financially sound carriers. The only reason that Texas Select started off with a decent financial rating is because Vesta backed them and they didn\’t have enough IBNR at the time to matter. The TDI was also desperate to get carriers in the state to provide capacity due to Farmers not writing at the time. Texas Select underwiters did a terrible job of charging actuarilly sound premiums to offset future losses. Vesta has basically been buying a book of busines and hoping they would be lucky. Ha!
There is a reason why that is the case, and the answer could be rewarding.
Rob
Spoke with Bond Holder Rep. who off the record predicted an 11th Hour Buy out of all Vesta\’s Book of Policies.