Alyssa Lane
Gulfstream Insurance, a Sarasota, Florida-based insurance company, admitted insolvency and agreed to liquidate in July 2021. The company suffered significant losses in 2020, with a net loss of $22.6 million and a net underwriting loss of $34.9 million. Gulfstream policies were cancelled effective August 27, 2021, affecting 35,000 policyholders. The liquidation process was overseen by the Florida Department of Financial Services, and the company's flood book of business transitioned to the NFIP Direct. While Gulfstream Insurance is no longer in operation, there are questions surrounding the impact on its customers and the transition of policies to other insurance providers.
| Characteristics | Values |
|---|---|
| Gulfstream Insurance liquidation | Gulfstream Insurance admitted insolvency and agreed to liquidate on July 28, 2021 |
| Gulfstream Insurance location | Sarasota, Florida |
| Gulfstream Insurance policies | 35,000 policies were likely to be liquidated |
| Gulfstream Insurance policy cancellation | Gulfstream policies were cancelled at 12:01 a.m. on August 27, 2021 |
| Gulfstream Insurance policy options | Policyholders were advised to contact their agents to acquire coverage from other companies |
| Gulfstream Insurance bank accounts | The Gulfstream accounts at the Hancock Whitney Bank were closed on February 28, 2022 |
| Gulfstream Insurance flood business transition | The flood book of business transitioned to the NFIP Direct and can be contacted at (800) 638-6620 |
| Gulfstream Insurance liquidation information | The Florida Department of Financial Services provides updates on its website |
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What You'll Learn
- Gulfstream Insurance admitted insolvency and agreed to liquidation in 2021
- Gulfstream policies were cancelled at 12:01 am on August 27, 2021
- Gulfstream's accounts at the Hancock Whitney Bank were closed on February 28, 2022
- Gulfstream's flood book of business transitioned to the NFIP Direct
- Centauri Insurance acquired Gulfstream renewals in 2021
Gulfstream Insurance admitted insolvency and agreed to liquidation in 2021
Gulfstream Insurance, a Sarasota, Florida-based insurance company, admitted insolvency and agreed to liquidation in 2021. The company provided homeowners' insurance and related services to customers in Alabama, Florida, Louisiana, South Carolina, and Texas.
Gulfstream's financial troubles began in 2020, when it suffered significant losses, including a net loss of $22.6 million and a net underwriting loss of $34.9 million. In 2021, the company failed to maintain the minimum surplus necessary to pay claims and was placed under administrative supervision. Gulfstream's ratings were downgraded by Demotech Inc., and the company struggled to secure additional capital. Despite rate increases, Gulfstream was unable to bring in enough money to stay afloat.
On July 28, 2021, the Second Judicial Circuit Court in Leon County, Florida, ordered the liquidation of Gulfstream Property and Casualty Insurance Company and its subsidiary, Gulfstream Select Insurance Company, which had been merged into one entity. Gulfstream policies were cancelled effective August 27, 2021, impacting approximately 35,000 policyholders. The Florida Department of Financial Services was appointed as the receiver to handle the liquidation process.
The remaining Gulfstream policies were expected to be picked up by a combination of private carriers and state-run insurance companies, ensuring that impacted customers could find replacement coverage in the private market. Centauri Insurance, a property and casualty insurance company, acquired the renewal rights to approximately 16,700 policies from Gulfstream across Alabama, Louisiana, and South Carolina.
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Gulfstream policies were cancelled at 12:01 am on August 27, 2021
Gulfstream Insurance, a property and casualty insurance company, admitted insolvency and agreed to liquidate in July 2021. The company was placed under administrative supervision in late June 2021 after it failed to maintain the minimum surplus necessary to pay claims. Gulfstream's policies were cancelled at 12:01 am on August 27, 2021.
Gulfstream Insurance, based in Sarasota, Florida, provided homeowners' insurance and related services to customers in Alabama, Florida, Louisiana, South Carolina, and Texas. The company was licensed in Florida in 2004 and was authorized to write coverage for homeowners' multiple perils, mobile home multiple perils, inland marine, allied lines, fire, mobile home physical damage, and other liabilities.
On July 28, 2021, the Second Judicial Circuit Court in Leon County, Florida, ordered the liquidation of Gulfstream Property and Casualty Insurance Company and its wholly-owned subsidiary, Gulfstream Select Insurance Company. The Florida Department of Financial Services was appointed as the receiver of Gulfstream. The company had been experiencing financial difficulties, with significant losses in 2020, including a net loss of $22.6 million and a net underwriting loss of $34.9 million.
As a result of the liquidation, Gulfstream's policies were cancelled effective 12:01 am on August 27, 2021. Policyholders were advised to contact their agents to assist them in acquiring coverage from other insurance companies. For Florida policyholders, other insurance carriers expressed interest in offering coverage, while for Alabama, Louisiana, and South Carolina policyholders, Centauri Specialty Insurance Company and Centauri National Insurance Company ("Centauri") offered replacement coverage.
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Gulfstream's accounts at the Hancock Whitney Bank were closed on February 28, 2022
Gulfstream Insurance, a Sarasota-based insurance company, admitted insolvency and agreed to liquidate in July 2021. The liquidation process followed a tumultuous period for the company, which included significant losses in 2020, a downgrade from ratings firm Demotech Inc., and the withdrawal of a potential investor.
Gulfstream Insurance's policies were cancelled effective August 27, 2021, and the company was ordered liquidated by the Second Judicial Circuit Court in Leon County, Florida. The Florida Department of Financial Services was appointed as the receiver of Gulfstream, and the company's flood book of business transitioned to the NFIP Direct for handling.
The liquidation of Gulfstream Insurance left approximately 35,000 policies subject to cancellation. However, other insurance carriers expressed interest in offering coverage to Gulfstream policyholders. Applied Underwriters' Centauri Insurance acquired the renewal rights to approximately 16,700 policies across Alabama, Louisiana, and South Carolina from Gulfstream.
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Gulfstream's flood book of business transitioned to the NFIP Direct
Gulfstream Property and Casualty Insurance Company and its subsidiary, Gulfstream Select Insurance Company, were merged into a single entity in 2021. The company was ordered to liquidate by the Second Judicial Circuit Court in Leon County, Florida, on July 28, 2021. Gulfstream policies were cancelled effective August 27, 2021, at 12:01 a.m.
Gulfstream policyholders were advised to contact their agents to acquire coverage from other insurance companies. Centauri Specialty Insurance Company and Centauri National Insurance Company ("Centauri") offered replacement coverage to policyholders in Alabama, Louisiana, and South Carolina. Centauri acquired the renewal rights to approximately 16,700 policies in these states.
Gulfstream's accounts at the Hancock Whitney Bank were closed on February 28, 2022. The company's liquidation process followed a challenging period, marked by financial instability, significant losses, and the withdrawal of the "A" designation by ratings firm Demotech Inc.
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Centauri Insurance acquired Gulfstream renewals in 2021
Gulfstream Property and Casualty Insurance Company was liquidated on July 28, 2021, by the Second Judicial Circuit Court in Leon County, Florida. The company was based in Sarasota, Florida, and was licensed in the state in 2004. Gulfstream provided homeowners' insurance and related services to customers in Alabama, Louisiana, South Carolina, and Texas.
Following the liquidation, Centauri Insurance, a subsidiary of risk services firm Applied Underwriters, acquired the renewal rights to approximately 16,700 Gulfstream policies across Alabama, Louisiana, and South Carolina. The acquisition was announced on February 22, 2021, and completed in the same month.
The transaction was expected to diversify Centauri's presence and expand its operations. Centauri is known for providing catastrophe coverage and financial protection to its policyholders through innovative solutions and personalized service.
Ron "Nate" Natherson, president of Gulfstream, stated that the acquisition gives its insureds and agency partners the ability to renew their business with Centauri. He added that they were pleased to enter into an arrangement with Centauri, as it would provide quality service to their customers.
Jamie Sahara, President of Applied Underwriters, also commented on the strategic positioning of the renewals, both geographically and in terms of including commercial and personal lines of business. The acquisition gave Centauri new access points to deepen its market presence and showcase its excellence in service, policy design, and claims satisfaction to a wider audience.
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Frequently asked questions
Yes, Gulfstream Insurance has admitted insolvency and agreed to liquidate.
Gulfstream Insurance agreed to liquidate on July 28, 2021, when it was ordered by the Second Judicial Circuit Court in Leon County, Florida.
Gulfstream policies were cancelled at 12:01 am on August 27, 2021.
You should get an insurance policy with another company. Your agent will be able to advise you on your insurance options.
The accounts were closed on February 28, 2022.
