However, the transaction does not encompass Farmers Insurance renters, auto, or umbrella policies.
To ensure a smooth transition, it has been confirmed that Farmers agents throughout Florida will have the opportunity to be appointed with Slide. All renewals issued by Slide are scheduled to commence for February 2024 effective dates.
The move comes following Farmers Insurance’s earlier announcement in July, stating its decision to cease offering coverage in Florida, impacting around 100,000 policyholders across auto, home, and other policy categories. Farmers Insurance now joins the ranks of major insurers withdrawing from Florida, following Centauri Insurance and Lexington Insurance, a subsidiary of AIG.
As a component of this transaction, Farmers commits to adhering to relevant emergency orders issued by the Florida Office of Insurance Regulation and other public agencies. Slide, having previously acquired renewal rights to over 91,000 policies from UPC Insurance earlier this year, has consistently strengthened its financial stability.
In July, the company concluded its second $100 million catastrophe bond, marking a significant milestone. Furthermore, in June, Slide successfully secured an additional $35 million in capital through a senior credit facility with Regions Bank. These strategic financial moves underscore Slide’s commitment to bolstering its position and resilience in the insurance market, providing a robust foundation for its ongoing operations and growth initiatives.
Speaking about the news, Bruce Lucas, Founder and CEO of Slide, said: “We remain bullish on Florida’s insurance market and believe the market is ripe for an innovator like Slide. The timing is right for us to scale our business and do our part to foster long-term stability in this market. The transaction with Farmers® will provide policyholders a seamless transition and ongoing coverage.”
He continued: “We have the technology, data set, and expertise to make better, faster decisions. Slide is profitable, has strong capitalisation, and unlike legacy insurers, we’re not burdened by years of prior claims and litigation that still need to be resolved. We’re pleased to have the opportunity to acquire renewal rights to these policies from Farmers and are committed to providing much-needed insurance capacity to Florida homeowners.”
Florida Chief Financial Officer, Jimmy Patronis, also commented on the news, saying: “The fact that Slide is picking up 86,000 policyholders is great news for those who were getting dumped by Farmers. It also demonstrates that carriers are finding more opportunities, in Florida’s insurance environment, after the reforms we enacted.”
He added: “The coverage that Slide will provide will make policyholders’ lives easier – and we’ll continue working to attract more carriers to Florida.”
Author: Joanna England