![]() ![]() Florida personal lines policies will be moved to Tower Hill Insurance Exchange, a separate entity from Tower Hill Prime created specifically to house this volatile segment. Tower Hill Prime has planned to non-renew about 50% of its Florida personal lines business by the end of 2022 and completely exit the segment by 2023. The negative outlooks reflect AM Best’s concern related to the effectiveness of current risk mitigation strategies as they relate to Tower Hill Prime’s ERM assessment and the execution risk of exiting the volatile Florida personal lines segment. AM Best expects Prime’s exit of this segment to generate a material reduction in accumulated exposure and probable maximum losses, as well as reduce the demonstrated volatility of operational results. In response to recent pressures, Tower Hill Prime has re-evaluated its risk appetite and implemented plans to exit its Florida personal lines segment as this business will renew into Tower Hill Insurance Exchange commencing Sept. Tower Hill Prime’s cumulative capital position has declined due to underwriting losses reported in each of the past five years, despite capital contributions from the holding company. which resulted in AM Best’s revised view of the holding company to negative from neutral, adding pressure to the downgrade. Combined with the aforementioned issues is elevated financial leverage of the holding company, Tower Hill Holdings, Inc. The company’s dependence on reinsurance adds another layer of concern amid the hardening reinsurance market. Furthermore, Tower Hill Prime, as is typical of Florida property writers and their risk exposure, has elevated gross underwriting leverage reflective of its reinsurance programs. Reserves, which continue to develop adversely, are influenced partly by widespread social inflation driven by increased litigation in the company’s operating territory. The downgrade of Tower Hill Prime’s Long-Term ICR reflects further surplus erosion and ongoing difficulty in organically growing surplus through operations and continued challenges in adequately setting reserves. ![]() The ratings reflect Tower Hill Prime’s balance sheet strength, which AM Best assesses as adequate, as well as its marginal operating performance, limited business profile and appropriate enterprise risk management. The outlook of these Credit Ratings (ratings) is negative. If you purchase big ticket items such as jewelry, electronics, or collectibles, check with your agent to be sure these new items are properly covered.OLDWICK, N.J.-( BUSINESS WIRE)- AM Best has downgraded the Financial Strength Rating (FSR) to B+ (Good) from B++ (Good) and the Long-Term Issuer Credit Rating (Long-Term ICR) to “bbb-” (Good) from “bbb” (Good) of Tower Hill Prime Insurance Company (Tower Hill Prime) (Gainesville, FL). Major repairs and enhancements to your home may qualify for a premium credit. If during the year you plan to make renovations to your home, such as a kitchen remodel or a new roof, be sure to contact your agent so that your policy can be updated. We recommend reviewing your policy coverages on an annual basis with your agent. Your Tower Hill agent has access to software that can help determine the correct Coverage A taking into consideration the current building construction materials and labor costs in your area. This is not the real estate or tax appraised value of your home. Keep in mind that that the Dwelling coverage (Coverage A on your policy) needs to be sufficient to cover debris removal, the cost to rebuild your home, and expenses to meet current building code. Be sure to check with your Tower Hill agent for details on our Emerald endorsement, which provides a package of enhancements. ![]() For instance, if you have a valuable coin collection or property used for business, you may need additional coverage. Your insurance agent can help you determine the amount of coverage and options applicable to your individual situation. In Florida, homeowners insurance is a must-have. Keep in mind that most home insurance policies do not cover flood damage. Our policies provide coverage for your home and its contents, plus liability coverage. Tower Hill has been offering Florida homeowners insurance since 1972. Your home is your castle, no matter the architecture or square footage. ![]()
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