Crusader Insurance Company Analysis

Serves small to mid-sized businesses in California; Based in Calabasas, CA; Founded in 1976; Offers specialized niche insurance products; Provides claims support and conservation services

Crusader Insurance Company has entered a conservation phase, meaning it is no longer writing or renewing insurance policies. Customers in California will not have new coverage options or the ability to renew their existing policies. However, the company will continue to honor existing policy coverage and benefits, adjusting and paying claims as long as the policy was in force at the time of the loss and the loss is covered by the policy terms. Customer support remains available through the company’s contact number for inquiries regarding conservation and claims.

Crusader Insurance Company effectively left the California insurance market by ceasing to write new insurance policies in September 2021 and discontinuing the renewal of policies in December 2021. However, there is no specific announcement date found regarding their decision to leave California.

Crusader Insurance Company is not explicitly leaving California, but it has entered a "run-off" phase since September 21, 2021, meaning it is no longer writing or renewing insurance policies. This decision was influenced by significant financial challenges, including a drastic reduction in policyholder surplus from approximately $20 million in March 2022 to about $8 million in March 2023. The decline was attributed to adverse loss developments, increased loss adjustment reserves, and the necessity to sell bond holdings at a loss due to rising interest rates. The company currently has around 350 open claims with case reserves of $23 million, primarily in California, and it is estimated that it will take about 12 months to complete the run-off of the remaining policy claims. These factors indicate a significant shift in the company's operations within California, driven by economic and regulatory pressures.