Small, Florida-based insurer, Ashmere Insurance Company (AIC), has placed itself into voluntary run-off after learning on the 1st of June, 2018 that it could not renew its reinsurance treaties.
Absent adequate reinsurance protection, the insurer placed itself into run-off by ceasing to write new business or renew expiring policies.
The company, which commenced underwriting in December 2016, was affiliated via common ownership with Guarantee Insurance Company, which is now in liquidation.
AIC’s June 30th, 2018 financial statement filed with the Florida Office of Insurance Regulation (FOIR) as well as other state regulators, noted that the insurer’s surplus had fallen below the minimum level required to transact insurance business in the State of Florida.
At the start of August, the insurer agreed to a consent order for administrative supervision to ensure a smooth transition and the orderly wind-down of its business, which, includes the firm cancelling all of its policies to minimize exposure to both policyholders and the public.
Before the start of September, 2018, the insurer plans to send policy cancellation notices to its other states where it previously operated.
AIC urges policyholders to replace their workers’ compensation insurance coverage as soon as possible, in no event later than the cancellation date shown on their Notice of Policy Cancellation, adding that it will only charge premium for the term of coverage up to the earlier of the date workers’ compensation coverage was replaced, or the date of cancellation.