Japanese-owned insurance companies announce withdrawal from California

Two more insurance companies have announced their plans to withdraw from California.

Tokio Marine America Insurance Co. and Trans Pacific Insurance Co. both announced that they are leaving the homeowners and personal umbrella insurance markets in California. 

The big picture: Both companies are subsidiaries of Japanese company Tokio Marine Holdings Inc. 

• They provide over 12,500 homeowner insurance companies combined and have $11.3 million in premiums. 
• Filings with the California Department of Insurance show that Tokio Marine also has over 2,700 personal umbrella policies totalling around $400,000. 
• People with policies with both companies will receive nonrenewal notices starting on July 1, and the companies will officially withdraw California in August 2025. 

The backstory: These two companies will join a growing list of insurance companies that are withdrawing or limiting business in California, making it harder for residents to obtain home coverage.

• State Farm, Allstate, Farmers Insurance, and The Hartford are among the insurance companies that have already announced similar moves in the past.