The company’s Florida personal lines policies will be moved to Tower Hill Insurance Exchange, a separate entity from Tower Hill Prime created specifically to house this volatile segment. “Tower Hill Prime faces several challenges ranging from severe hurricanes, more frequent lower level weather-related events and social inflation,” Best added.Įxplaining the execution risk, AM Best reported that Tower Hill Prime has planned to non-renew about 50 percent of its Florida personal lines business by the end of 2022 and completely exit the segment by 2023. He put me at ease during the entire process.
#TOWER HILL INSURANCE REVIEWS PROFESSIONAL#
The negative outlooks also consider pressures on the company’s operating performance, the announcement said noting that recent results are not aligning with AM Best’s assessment of marginal. Richard was thorough, precise and very informative while maintaining a pleasant and professional demeanor. “Additionally, Tower Hill Prime continues to face challenges in adequately setting reserves,” the AM Best announcement said, noting that reserves are continuing to develop adversely in spite strengthening measures-influenced partly by widespread social inflation driven by increased litigation in the company’s operating territory.īest said the negative outlooks reflect the rating agency’s concerns about current risk mitigation strategies, and execution risk in exiting the volatile Florida personal lines segment. “While Tower Hill Prime has benefitted from capital contributions through the holding company and the issuance of surplus notes, the quality of operating company capital has deteriorated as surplus notes currently make up more than half of Tower Hill Prime’s second quarter 2022 surplus.” Balance sheet strength is adequate, according to AM Best.ĪM Best said the downgrade of Tower Hill Prime’s Long-Term ICR reflects a significant decline in its overall risk-adjusted capitalization. The AM Best ratings reflect Tower Hill Prime’s balance sheet strength, marginal operating performance, limited business profile and appropriate enterprise risk management.
#TOWER HILL INSURANCE REVIEWS UPDATE#
The latest update in the news and events section of the website was a binding notice posted on Monday, stating that “The Tower Hill Companies are not currently binding new insurance policies or accepting requests to change coverages on existing policies” for the entire state of Florida and for numerous counties in Georgia, Alabama and South Carolina. The Tower Hill Insurance Group website did not yet reflect the withdrawal of rating, which was still shown as B+ last night. Over the years, more than two million customers have trusted Tower Hill to protect their homes and businesses. Still owned by our founding family, Tower Hill has grown into one of Florida’s largest residential property insurers and has expanded into 16 additional states. Concurrently, AM Best withdrew these ratings at the company’s request, the rating agency said. Reviews In 1972, we opened as a small insurance agency in South Florida.
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