Florida’s American Integrity to Sign Insureds of Failed Northern Capital

Tampa-based American Integrity Insurance Co. said that it would provide insurance coverage for up to 20,000 of the 62,000 customers of Northern Capital Insurance Co., which is being liquidated.

American Integrity said it is sending letters to its 2,600 insurance agents statewide and to as many as 20,000 pre-selected Northern Capital policyholders in hopes of signing some of the stranded policyholders.

Under a May 1 court order placing Northern Capital into state receivership, all of its policies will expire on May 30, unless terminated prior to then. Customers of the troubled carrier have been urged to find new coverage before then. American Integrity said there will be no interruption in coverage for those policyholders it signs.

Lisa Miller, company spokesperson, said most of Northern Capital’s agents also represent her company and it would sign up any who do not, so the transition for customers should proceed smoothly.

She said American Integrity agreed to get involved after inquiries from the Office of Insurance Regulation which is looking for private carriers able to take on the Northern Capital accounts.

American Integrity holds a Financial Stability Rating of A (Exceptional) from the rating organization for newer insurers, Demotech. For 2009, the insurer reported policyholder surplus of $23 million, compared to about $9.5 million in 2008. For 2009, it had a profit of $2.7 million on $61.2 million of premiums earned.

Bob Ritchie, American Integrity president and CEO said his company is committed to the Florida market. “Our company financials are very strong. Our utmost concern is to keep our promises to policyholders. We take pride in offering stability, professionalism and integrity,” he said in the company’s release.

American Integrity says it has a comprehensive reinsurance program to protect policyholder surplus in the event of a major catastrophe.

The company was first licensed to write residential property insurance in September 2006. Since then it has assumed more than 70,000 homeowners, manufactured housing and dwelling fire policies from the state-backed Citizens Property Insurance Corp. and now has more than 85,000 customers.

Topics Florida