![]() Additionally, as a top-three Florida homeowners’ writer, any sizeable hurricane activity or significant change in limits/costs for reinsurance may constrain the operating position (profitability/leverage) of any affected insurance subsidiary. The group seeks to mitigate this concentration through product and geographic expansion with near-term plans to grow in the small commercial lines market (written exclusively in TH Prime) and to secure additional state licenses. Roughly 85% of Tower Hill’s direct written premium (DWP) in 2019 was homeowners’ business, and Florida accounts for nearly 98% of 2019 DWP. Tower Hill’s revenues, and hence earnings, are highly concentrated in Florida, a state exposed to both natural catastrophes and significant legal challenges for residential property insurance writers. Moreover, the organization’s distribution relationships are broad and well-established, including affiliates of well-recognized national direct writers as well as on-line agencies.īalancing these strengths are the organization’s exposure to natural catastrophes, lack of geographic and product diversification, and recent adverse loss reserve development. KBRA views Tower Hill’s overall catastrophe reinsurance program as strong, its investment portfolio as conservative, and notes that its premium leverage is below most Florida regional peers. Additionally, the majority owner, as well as minority owner Renaissance Re, continue to provide financial and operational support as well as underwriting expertise and risk management solutions. The MGA and claims administration companies provide a complementary revenue stream (essentially all intercompany related) via the MGA commission agreement and claims fee schedule. Similar to other Florida carriers, Tower Hill utilizes an efficient operating model by leveraging affiliated services. KBRA believes the surviving entity is financially stronger and has greater capacity to write new business. The group’s solid capital position was recently enhanced by a capital contribution from its MGA following the merger of two of its insurers into TH Signature. Tower Hill’s ratings reflect its well-integrated operating model, solid capitalization, sound catastrophe management, and broad distribution relationships across various channels. Tower Hill is one of Florida’s largest residential property insurers with approximately 6% market share. Tower Hill is a privately owned organization comprised of three Florida-domiciled direct writers, an affiliate offshore reinsurer, a managing general agency (MGA), and two claims services companies. ![]() NEW YORK-( BUSINESS WIRE)-On June 17, 2020, Kroll Bond Rating Agency (KBRA) assigned the following insurance financial strength ratings (IFSR) to the insurance subsidiaries of the Tower Hill Insurance Group (Tower Hill): A- to Tower Hill Prime Insurance Company (TH Prime) BBB+ to Tower Hill Preferred Insurance Company and BBB+ to Tower Hill Signature Insurance Company (TH Signature). ![]()
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