Subsequent Event

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

On April 9, 2020, the Company announced that it was refunding 15% of monthly private passenger automobile insurance premiums, or approximately $70 million, to its policyholders for two months as less driving during the COVID-19 pandemic has resulted in fewer accidents and claims.  The Company expects to process the premium refunds, via credits to policyholders’ accounts, in May and June of 2020. Accordingly, the Company expects second quarter premiums written and earned to be reduced by approximately $70 million as a result of the premium refunds. We will continue to monitor the extent and duration of the economic impact related to COVID-19 and make further adjustments as necessary.

On April 13, 2020, the California Insurance Commissioner issued Bulletin 2020-3 (the “Bulletin”) ordering insurers to make an initial premium refund within 120 days from the date of the Bulletin to adversely impacted California policyholders for the months of March and April 2020, as well as for May 2020 if shelter in place restrictions continue. The Commissioner granted insurers flexibility in determining how to quickly and fairly process the premium refunds. To the extent shelter in place restrictions are extended, premium refunds could be more than the estimated $70 million currently expected to be refunded by the Company.