Frederick Mutual, which is exiting the personal lines market and focusing strictly on commercial lines in the Mid-Atlantic and Southern regions, has reached a renewal rights agreement with another insurer for the bulk of its personal lines business.
Beginning Jan. 1, 2024, Farmers Mutual Fire Insurance Company of Salem County will quote and issue replacement coverage to Frederick Mutual’s personal lines policyholders in Maryland and Pennsylvania who apply to Farmers of Salem and qualify for coverage in accordance with its underwriting guidelines.
Nancy Newmister, president of Frederick Mutual, told Insurance Journal that similar renewal agreements with two insurers for personal lines policyholders in Virginia and North Carolina are being finalized. Maryland and Pennsylvania regulators have approved the market withdrawals, Newmister said. The renewal agreements are not required or subject to regulatory approval; they are the company’s own initiative.
Newmister said her company tried but was unable to reverse negative trends in personal lines and decided it needed to “pivot” to commercial lines only.
Over the past few years, the company has invested in and grown its commercial business to now be as much as 90% of its writings, up from its prior 60% commercial and 30% homeowners in 2021. Commercial lines is where it intends to focus, Newmister said.
Farmers of Salem distributes through independent agents in New Jersey, Maryland, Pennsylvania and Delaware.
Was this article valuable?
Here are more articles you may enjoy.