Blue Ridge Insurance Company, an affiliate of General Casualty Insurance Companies, has announced it will withdraw from the New Jersey homeowners insurance market beginning with policies renewing June 1.
The withdrawal plan, which has been approved by New Jersey's commissioner of insurance, includes a provision to transfer all current policies upon renewal to The Contributionship Companies (Philadelphia Contributionship Insurance Company and Germantown Insurance Company).
Blue Ridge, since its integration into General Casualty in 2001, is refining its marketing efforts based on the company's overall core business strategies. Blue Ridge policies represent less than 1 percent of the total New Jersey homeowners market, with $5.5 million in direct written premiums and 10,000 policies in force in 2002.
"As we convert our products and systems to General Casualty, we are working to achieve consistency among our areas of operation," said Tom Greenfield, regional vice president for General Casualty. "New Jersey is the only state in which we offer homeowners as a stand-alone product line."
"Because of the extensive resources required to complete the product/system conversion and our relatively minor position in New Jersey market, it is necessary to withdraw our current portfolio of products from the state," Greenfield said.
All 75 current Blue Ridge agencies were notified of the withdrawal Feb. 14.
Contributionship has agreed to service all current Blue Ridge business, provide limited agency agreements to all current Blue Ridge agencies, and work to provide full agency contracts to as many agencies as possible. Contributionship currently has contracts with 20 Blue Ridge agencies in New Jersey.
The two companies expect minimal premium rate differences and little effect on current policyholders once the transfer of business takes place.
"We are in the midst of meeting with all agents to get to know them, provide information about our company, and explore additional opportunities for growth," said Angela Schemm, marketing representative for The Contributionship Companies. "We are hopeful that we will be able to provide a seamless transition for Blue Ridge agents and policyholders."
Blue Ridge, under General Casualty, will retain its certificate of authority in New Jersey, which would permit it to offer commercial lines products, a key segment targeted for growth within General Casualty's business plan, in the future.
For more information please contact Anne M. Smith.