Frontier Insurance Group’s primary operating subsidiary, Frontier Insurance Co., has voluntarily withdrawn from writing new and renewal insurance business across all lines.
Mark Mishler, spokesperson for Frontier, told the Insurance Journal that pulling out of the market was a difficult decision for the company. “The business we are writing is profitable,” he said. “We hate to get out of the business at this point.”
For now, Frontier Group will focus its attention on its MGA business, bail bonds and a third party administrator claims unit. Last year, the company pulled two other insurance companies, United Corp. and Western Indemnity, out of the market. Today, Frontier Pacific is Frontier Group’s only insurance unit still writing business.
“We plan on coming back in the future,” Mishler said, though no timeline for reentry has been set, he said.
Frontier will be working with regulatory agencies on a plan to withdraw from the market in an orderly fashion. Policyholders will continue to be serviced by Frontier.
“Our decision to withdraw from the marketplace was a difficult one, but we believe it to be in the best interests of all our constituents,” said Mark Mishler, president of Frontier Insurance Co. “Frontier is working on strategies to continue its business during the period Frontier Insurance Company is not assuming risk. It is our goal to make certain that the policyholders continue to be serviced and protected.”
Earlier this month, three Frontier Insurance Group executives resigned. Patrick Kenny, executive vice president and chief financial officer, Douglas Moat, executive vice president and Richard Seyffarth, executive vice president and chief investment officer left due to reduced business.
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