Although Farmers Insurance Exchange is leaving Louisiana’s homeowners and auto markets, the Farmers Insurance Group of Companies will still have more than 100,0000 policies in the state under three other brand names, according to a spokesman for the companies.
The group’s Foremost, Bristol West and 21st Century insurance companies won’t be affected by the Farmers Insurance Exchange decision, spokesman Mark Toohey said.
“We’re not abandoning the state. We’re not leaving the state,” Toohey said of the group’s three other brands.
Toohey said while most of the remaining Farmers Group policies are for auto insurance, Foremost has 29,000 mobile home policies in place.
The Farmers Insurance Exchange policies — 28,500 homeowners, umbrella and auto policies — make up less than a third of the total policies the Farmers Insurance Group has in Louisiana, he said.
The Farmers Insurance Exchange brand has never been a major player in Louisiana and has around 2.4 percent of the homeowner’s market and about 0.2 percent of the auto business, Toohey said.
Farmers Insurance Exchange has around 23,000 homeowner’s policies in Louisiana, according to Insurance Commissioner Jim Donelon.
Toohey said Farmers Insurance Exchange is leaving the Louisiana market because of “significant and continuing” losses in Louisiana.
The Insurance Department rejected the company’s last two efforts to raise rates, by 18.3 percent in 2010 and 39 percent in 2012.
Donelon said Thursday he wasn’t surprised by the ongoing losses, but he is confident other homeowner’s insurance companies can pick up the Farmers Insurance Exchange policies.
Another firm is already looking into taking over that book of business, he said.
Farmers Insurance Exchange will stop renewing policies in late April and will have exited Louisiana’s homeowner’s and auto business a year after that, Donelon said.