Citing recent trends in reinsurance, North Pointe Holdings Corp. of Southfield, Mich. has announced it is evaluating its commercial insurance lines in the state of Florida and expects to reduce its commercial policies by 40 percent, while reducing its total commercial policy count by approximately 70 percent.
“Profitability is key to our business,” explained James Petcoff, CEO. “Recent storm activity and increases in reinsurance costs have caused us to take a closer look at our strategy in Florida.
“At the end of the day, if we can’t sustain profits while assuming a reasonable level of risk, we feel it is prudent to reduce exposures to more acceptable levels,” Petcoff said. “Given the level of reinsurance pricing and shrinking capacity, we have taken immediate measures to significantly reduce our commercial exposure in the state.”
Petcoff estimated the full impact of these measures will become effective over the next 60-90 days. He said he hopes to have a more exact timeline and level of impact within the next 30 days.
“It is important to note that our current actions are consistent with our long standing underwriting philosophy,” Petcoff explained. “We see growth opportunities within the commercial line segment, many of which are outside Florida. The most recent entry into the roller skating center segment is just one example. We will continue to leverage our underwriting and claims expertise to pursue geographic expansion and profitable premium growth.”
North Pointe Holdings is a property and casualty insurer that markets specialty commercial and personal insurance products. With a focus on owner-operated businesses, the company is the nation’s largest insurer of independent bowling centers and the largest insurer of liquor liability insurance in Michigan.
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