Weiss Ratings Names Strongest, Weakest Homeowners Insurers in Texas

June 20, 2018

Palm Beach Gardens, Florida-based Weiss Ratings has named the six strongest providers of homeowners insurance doing business in Texas that are financially ready for the 2018 hurricane season. At the same time, Weiss Ratings has identified seven weak insurance companies that may not be as well prepared.

Among insurers doing $100 million or more of premium business in Texas, Weiss Ratings identified the strongest as United Services Automobile Association (rated A- or “Excellent”) and USAA Casualty Insurance Company (A- or “Excellent”). Both insurers are among the 10 largest Texas insurers and have consistently earned an Excellent rating for financial strength.

Weiss Ratings’ Recommended Texas Homeowner Insurers
(all companies with a Weiss Rating of B+ or higher)
Texas Homeowner Insurers Weiss Safety Rating Homeowner Premiums $ Millions
Amica Mutual Insurance Co. B+ 165.7
Auto Club Indemnity Co. B+ 126.3
Central Mutual Insurance Co. B+ 39.7
United Svcs Automobile Assn A- 349.1
USAA Casualty Insurance Co. A- 274.0
USAA General Indemnity Co. B+ 121.9
A = excellent; B = good; + or – indicate upper or lower third of grade range. Data: 12/31/17

Based on just released, year-end 2017 data, 55 percent of homeowner insurers doing business in Texas earned a Weiss Safety Rating of B- (good) or higher, compared to 46 percent in that category in 2013, the company said.

According to Weiss Ratings, which accessed data from the Texas Department of Insurance’s Hurricane Harvey Jan. 23, 2018, data call, about 44 percent of Texas homeowners are still waiting for their insurance claims to come through from last year’s Hurricane Harvey. I

Among carriers with more than $20 million in annual homeowners premiums in the state, Weiss Ratings identified seven that merit a grade of D+ (“weak”) or lower:

Weakest Texas Homeowner Insurers
(all companies with premiums of $20 million or more and a Weiss Safety Rating of D+ or lower)
Texas Homeowner Insurers Weiss Safety Rating Homeowner Premiums $ Millions
Aegis Security Insurance Co. D+ 22.7
ASI Lloyds D+ 209.5
Cypress Texas Insurance Co. D 53.5
Homeowners of America Ins Co. D 112.8
Mountain Valley Indemnity Co. D 24.2
Palomar Specialty Insurance Co D- 20.9
Texas FAIR Plan Association E- 74.2
D = weak; E = very weak; + or – indicate upper or lower third of grade range. Data: 12/31/17

Weiss Ratings provides safety ratings on 19,000 insurers, banks and credit unions as well as investment ratings on 34,000 stocks, mutual funds and ETFs. It accepts no compensation of any kind from the companies it rates. Its sole revenue source is from the sale of ratings and research to consumers, investors and other end users.

Source: Weiss Ratings

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