Monday, March 4th, 2002 — High mold-damage claims will push down the financial-strength ratings of some Texas insurers as their financial performance and capital positions continue to deteriorate, A.M. Best, the Oldwick, N.J.-based rating company, warned yesterday.
Best said that unexpectedly large mold-related claims have disrupted the entire Texas homeowners market.
In a five-page report, Best noted that as a result of mold-damage claims, several carriers have stopped writing new business entirely in the state, while others have scaled back. Best said a large percentage of the market continues to record poor financial performance, with several carriers posting triple-digit loss ratios as of Sept. 30, 2001.