Posted on 09 Oct 2009
Nationwide Insurance Co. of Florida announced Wednesday that it plans to drop 60,000 home insurance policies -- almost half of its roughly 129,000 residential policies.
The policies would be dropped starting in July when they are up for renewal. Nationwide, which has been scaling back its risk in Florida for several years now, said Tower Hill Group insurance has agreed to offer coverage to many of the policyholders. Nationwide spokeswoman Nancy Smeltzer said the company made the decision to "maintain viability, manage risk and continue to serve the policyholders we have in Florida."
"This is a difficult business decision, but Nationwide must make tough choices now to make sure they can be here for our customers in the future," the company said in a statement.
After Nationwide shrinks, it will still have more than 275,000 total policies in Florida with coverage for cars, businesses and homes.
Parent company Nationwide Mutual Insurance Co. of Columbus, Ohio, is a leading U.S. property-casualty insurer, with offices across the country. The company also sells its products through such subsidiaries as ALLIED Group, Nationwide Agribusiness Insurance, GatesMcDonald, and Scottsdale Insurance.