Nationwide to drop 40,000 Florida policies - Jacksonville Business Journal:

Nationwide to drop 40,000 Florida policies - Jacksonville Business Journal:

Nationwide to drop 40,000 Florida policies

Jacksonville Business Journal - 10:54 AM EDT Wednesday, August 29, 2007

Nationwide Insurance has chosen not to renew about 39,000 homeowner's insurance policies in Florida. In mid-September, the company will begin mailing nonrenewal notices to the affected homeowners and to about 1,600 commercial property policyholders.

The affected policies will begin expiring in January 2008.

In a letter to Florida agents, Florida Regional Vice President Jeff Rommel said the move was one of two designed to change its business strategy in Florida, the other being a gradual move from exclusive Nationwide agents to independent agents.

Rommel said in the letter that dropping the policies is being done "to bring our property exposure to an appropriate level in the state of Florida."

Nationwide paid out more than $1 billion in hurricane claims in 2004 and 2005.

Rommel said many of the policyholders dropped by Nationwide will be offered coverage by Security First Insurance Co.
After dropping the policies, Nationwide will have about 506,000 policies in the state.