New Century Insurance Company, a property and casualty insurer licensed only in Texas, was placed in receiv
ership receivership and ordered into liquidation by the Travis County District
Court in Austin on Sept. 3, according to the Texas Department of Insurance.
The district court issued an order finding New Century was insolvent, placing it into liquidation, and appointing th
e Texas commissioner of insurance as liquidator. New Century doesn’t have admitted assets equal to its liabilities and has tot
al adjusted capital less than that required under Texas Insurance Code 841, TDI said in a FAQ page for policyholders of the insurer.
Policies with New Century will be cancelled on October 3, 2025, at 11:59 p.m.
Commissioner Cassie Brown has appointed FitzGibbons and Company, Inc as the Special Deputy Receiver (“S
DR”) to administer the New Century estate. Policyholders with new claims are asked to report claims to FitzGibbons and Company.
The Texas Property and Casualty Insurance Guaranty Association (TPCIGA is now responsible) for p
aying covered claims for New Century policyholders subject to sta
tutory limits, Fitzgibbons and Company said in a notice to agents and brokers of New Century.
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At its most basic, all reinsurance businesses must balance top line growth with profitability. But how can we mak
e sure we are making the right decisions as market dynamics shift?
First, we must understand why the cycle occurs. Talk of managing the cycle has existed for multiple decad
es, driven by either an abundance or a shortage of capital in the industry, which itself is driven by favorable or unfavora
ble financial results. The lag between underwriting years and
financial years masks the impact of the cycle, enabling reserve releases to bolster results as returns start to drop off.
Understanding why it occurs is only part of the solution; anticipating the cycle’s low point is equally important
. Having tools in place to monitor pricing trends and changes in terms and conditions can help predict upcoming shifts.
The people who have the clearest insight into the market at any given time are, of course, underwriters. They are the ones who hold day-to-day conversation
s with their clients. Underwriters understand the economic challenges cedents face and the insurance protection they need to navigate often-volatile market conditions.
Prudent management teams should listen carefully to what their underwriters are telling them about the realities their clients are experiencing on the ground.