JUPITER, Florida (April 25, 2011) — On Thursday, regulators took control of Majestic Insurance Company of San Francisco, a property and casualty insurer, following the signing of an order of conservatorship by the Superior Court of San Francisco.
Majestic Insurance Company provides workers compensation insurance in five states: California, Arizona, New York, New Jersey and Nevada. Weiss rated the insurer D+ (Weak) at the time of failure and has rated it “Weak” since June 2005. With assets of $295.4 million as of December 31, 2010, Majestic reported capital and surplus of $57.9 million, a 23% decline from year-end 2009. Premium income fell 40% during 2010, and the company recorded $20.8 million in losses during the year.
The California insurance commissioner is encouraging policyholders to continue paying premiums. According to the commissioner, during conservation, the injured workers covered by Majestic policies will continue to receive benefit payments and medical providers who care for those injured workers will continue to be paid.
Weiss rates 306 property and casualty insurance companies D+ or lower. Consumers can view the full list at www.weissratings.com. For information on what to do if an insurance company fails, consumers can review the FAQ section of Weiss Ratings’ website.
Weiss Ratings, the nation’s leading independent provider of bank, credit union and insurance company financial strength ratings, accepts no payments for its ratings from rated institutions. It also distributes independent investment ratings on the shares of thousands of publicly traded companies, mutual funds, closed-end funds and ETFs. For more information on financial strength ratings, visit www.weissratings.com.