A Liberty Mutual unit is taking over the personal lines business of an insurer in three states.
The unit, Safeco Insurance, will underwrite MAPFRE’s personal lines policies in Indiana, Kentucky and Tennessee. Effective March 01, MAPFRE will withdraw its business in these three states – as well as in New York and New Jersey – as part of its strategic plan to focus on its core states and lines of business.
According to a release from MAPFRE, it will sell its life business and conduct an orderly withdrawal from the personal lines markets in states where it has underperformed. The company will then find replacement carriers to underwrite the policies where viable.
“This transaction represents definitive progress on MAPFRE’s profitable growth strategy in the US, allowing us to focus operations on a reduced number of states,” said MAPFRE Insurance president and CEO Alfredo Castelo. “We are pleased to partner with Safeco to provide a seamless transition for our agents and customers.”
“This innovative approach to book transfer leverages our leading products and services to help grow their business while providing their customers with a great experience,” commented Safeco Insurance senior vice-president of distribution strategy and operations support Gary Fischer.
Carrier Management reported that the 11 states MAPFRE identified as “core” regions where it will continue its growth strategies are California, Connecticut, Idaho, Maine, Massachusetts, New Hampshire, Ohio, Oregon, Rhode Island, Vermont, and Washington. The insurer added that it will also continue to operate in three other states – Arizona, Florida, and Pennsylvania – but noted that in these states, MAPFRE “must first reinforce the company’s underwriting and distribution foundation” before it can expand its capacities.
Although Safeco Insurance is picking up MAPFRE’s personal lines policies in Indiana, Kentucky and Tennessee, there is yet to be any word regarding the fate of the latter’s businesses in New York and New Jersey. MAPFRE is pursuing the sale of its New York and (in terms of the company’s life business) Delaware-based subsidiaries.