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American National Exiting Homeowners Insurance Market


Following its announcement several months ago to leave the homeowners insurance business in nine states including California and Louisiana, American National appears to be exiting the line in all states.

According to a letter sent to employees and other stakeholders last week, American National has “made the additional decision to exit the homeowners line of business in all remaining states.”

The Galveston, Texas-based insurance group, which operates in all 50 states, began withdrawing its homeowners product from nine states—California, Louisiana, Arkansas, Colorado, Minnesota, Oklahoma, South Carolina, South Dakota, and Washington—in February. The exit from other states will be done in stages throughout the remainder of the year.

“Profitability concerns in homeowners are compelling given the significant and persistent underwriting losses over the last 10 years,” said Matt Ostiguy, senior vice president and property/casualty chief operating officer of American National Holding Company, in the letter. The company will turn its P/C focus to the farm and ranch line of business, as well as certain commercial lines and a renters insurance program to achieve its goal of a combined ratio of 95, he added.

When reached for comment, a company spokesperson confirmed American National had notified state regulators of the intent to withdraw from the homeowners insurance market in the original nine states.

“As we focus on expanding America National’s core insurance operations and businesses, we remain committed to serving as a source of certainty for our clients,” the spokesperson added.

American National ranks 7th in the country in farm and ranch, according to Ostiguy’s letter. About 94% of P/C operating earnings have come from agricultural commercial business, and it has been a growing market for the insurer. The homeowners line is not a large business for American National Group. According to AM Best, annuity, life, and accident & health account for large majority of the group’s net premiums.

Ostiguy’s letter addressed the impact of the insurer’s employees. He said the decision will affect staffing levels. Some team members will be reassigned to support the new growth initiatives.

American National became a subsidiary of Brookfield Reinsurance Ltd. in 2022 when Brookfield purchased insurer American National Group Inc. for about $5.1 billion in an all-cash deal.

The company announced a comprehensive rebranding initiative to modernize its brand in 2023.

American National’s move comes as the U.S. homeowners insurance segment posted its worst underwriting results in over a decade in 2023.

As of last July, American National Group has a Financial Strength Rating of A (Excellent) from AM Best, with a stable outlook. Fitch Ratings in May affirmed the A Insurer Financial Strength (IFS) ratings for American National. Fitch also maintained the ‘BBB+’ Long-Term Issuer Default Ratings (IDR) for the company with a stable rating outlook, which Fitch said encompasses the company’s debt repayment ability and its outstanding debt instruments. S&P Global Ratings in May also affirmed American National’s A Rating.

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