Florida Home-Grown Insurer Says It’s Ready for 30,000 State Farm Policies

After State Farm announced it would be leaving behind 1.2 million property policyholders within the next two years, state officials expressed confidence that the private insurance market, including a number of relatively new Florida-only insurers, would rescue the business.

Now one domestic insurance group is trying to seize the opportunity.

John Jerger, president of American Traditions Insurance Co. and Modern USA Insurance Co., announced that his companies are prepared to take on as many as 30,000 State Farm residential policyholders.

Jerger said he thinks his companies can not only take on that many new customers but save a lot of them some money, about $1,300 a year on average for a $200,000 home.

“We have the ability to do this,” he said, adding that if there were a demand for even more, his companies would act to expand to meet it. “Our companies are also committed to raising more capital to provide additional capacity if it is needed.”

Jerger’s companies now write about $60 million in business in the state, insuring about 60,000 policyholders, through about 1,000 independent agents and brokers.

American Traditions and Modern USA provide residential homeowners, condos and mobile home property coverages. The companies are highly automated, with online submission forms.

Jerger said his company welcomes additional agents and brokers to do business.

He urged State Farm policyholders to begin shopping right away, noting that if there happens to be a bad storm season later in the year, that could dampen insurers’ willingness to take on new business later.

Jerger’s family has been in the Florida insurance business since 1946, although these insurers are new. American Traditions was formed in 2005 and Modern USA in 2007. Both have been given “A Exceptional” financial stability ratings by Demotech.

Jerger said that while capital is obviously important to writing business in Florida, a good reinsurance program is equally important. He said his firm’s reinsurance program combines coverage from Lloyd’s with the state catastrophe fund coverage.

Jerger told Insurance Journal he thinks the State Farm exit could be “good for the state and its home-grown companies.”

Source: T.J. Jerger MGA
www.jergermga.com

Topics Florida Carriers