Jan 2, 2018

MAPFRE to 'package' New Jersey and New York lines of business

Recently, MAPFRE announced it will exit the personal-lines business in five states—New York, New Jersey, Kentucky, Indiana and Tennessee. With that announcement, it had sent out several communications to its agents. The first notification informed the agents that MAPFRE USA reorganized its operations to add focus to core lines of business and states and that it intends to cease operations in those five states. The second communication was an FAQ, which answers some of the more common questions about the company’s intention to withdraw from the five states mentioned above.

MAPFRE has stated it is looking to "package" together its lines of business in the New Jersey and New York. According to the company, these states are closely aligned and it would create the smoothest transition as possible for its insureds and its agent community. Initially, the company indicated that it hopes to announce a buyer early in the new year.

In recent years, MAPFRE has struggled with rate adequacy in its personal auto "other liability" lines of business with its adjusted loss ratio of in excess of 140 in New Jersey and 110 in New York (according to A.M. Best 2016 data).

MAPFRE also announced that effective Monday, Jan. 1, 2018, it will reorganize its regional structure to establish two primary areas of focus: 1. Massachusetts/Northeast Region and 2. States Outside of the Northeast Region, which will be managed through three Regional Centers. Along with the restructuring announcement, the company announced the promotion of Patrick McDonald as the new CEO of the Northeast Region. For more information, you can access the company’s website.