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Texas Windstorm Insurance Association Seeks 5% Rate Increase

The Texas Windstorm Insurance Association has filed for 5 percent increases in both its residential and commercial rates, effective Jan. 1, 2011.

The state's insurer of last resort provides wind and hail coverage in the 14 coastal counties and parts of Harris County. TWIA provides wind and hall coverage when insurance companies exclude it from their homeowners and other property policies sold to coastal residents.

A.M. Best Co. has revised the outlook to positive from stable and affirmed the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of “a-” of American Strategic Insurance Group (ASI) (St. Petersburg, FL) and its members. (See below for a detailed listing of the companies.)

The ratings reflect ASI’s continued underwriting profitability and solid risk-adjusted capitalization resulting from prudent underwriting, innovative pricing systems, effective reinsurance programs and a sound overall risk management focus. As a result, significant surplus growth has occurred in recent years, complemented by continued support from the parent company. The positive outlook contemplates that operating performance and risk-adjusted capitalization will continue to trend favorably in the near and long term, as ASI begins to further diversify its geographical footprint...

According to data assessed between 2000 and 2007, Allstate found that water damage ranked as the most common claim from its Texas homeowner insurance customers. It was followed by wind and hail damage as the second and third most common claim...