Ohio-based State Auto Insurance Cos. said it will cease writing coverage in Rhode Island and write only certain lines of business in Massachusetts.
State Auto will continue to write business and farm Insurance in Massachusetts, but will not renew any lines in Rhode Island, it said.
However, the mutual insurer has also reached a renewal rights agreement with Narragansett Bay Insurance Co. (NBIC), which will take over its homeowners insurance business in the two states.
“Our partnership with Narragansett Bay is about taking care of customers and our independent agents by providing them with options,” said Charles McShane, Jr., regional president for State Auto.
Under the agreement, NBIC will offer coverage to former State Auto customers starting January 1. This arrangement involves more than 10,000 policies with combined premiums of $9 million.
Nick Steffey, CEO of NBIC, noted, “We are excited to be able to provide a growing and stable homeowners market in the northeast as other carriers reexamine their strategies. This allows us to grow with both our current independent agents and new agent partners.”
The companies have already begun meeting with agents to outline the details and timing of the switch.
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