Exclusive: Berkshire E&S subsidiary AZGUARD exiting California homeowners

By James Thaler

April 2 - (The Insurer) - Berkshire Hathaway subsidiary AZGUARD has notified staff that it is exiting writing excess and surplus lines homeowners business in California, marking the latest carrier retrenchment in the state in a segment of the market that continues to be stressed.

The move represents a marked turnaround to the GUARD unit’s approach to the segment in the state.

Data from S&P Capital IQ shows that AZGUARD had more than doubled its California homeowners direct premiums written in 2024 to $55.62 million, up from just $23.66 million in 2023.

That same data shows that AZGUARD’s overall consolidated loss ratio increased to 104.45% in 2024 from 76.89% in 2023, while its combined ratio jumped to 149.65% from 112.14% in 2023, after posting an underwriting profit and 94.79% combined ratio in 2022.

AZGUARD wrote $82.37 million in direct premiums overall in 2024, with $68.42 million of that made up of personal lines premium, $13.95 million in commercial lines premium and $62.74 million written in Western U.S. states.

A spokesperson for GUARD confirmed that the insurer is exiting writing homeowners business in the state, but declined to comment on the exact reasoning for the exit, when it would take effect,or if any staff positions at the firm would be affected by the move.

“GUARD is rapidly becoming the leading small business insurer. We have decided to cease writing E&S homeowners in California through our surplus lines carrier AZGUARD,” a spokesperson said in an emailed statement to The Insurer.

“This line was not material relative to our overall business. GUARD remains laser focused on becoming the leading small business insurer and continues to invest in people and technology in its core commercial lines products – both admitted and surplus,” the spokesperson added.

AZGUARD Insurance Company was formed in 2019 as a wholly owned subsidiary of WestGUARD Insurance Company and operates under the trade name Berkshire Hathaway GUARD Insurance Companies.

Wilkes-Barre, Pennsylvania-based GUARD itself was founded in 1983 and is led by CEO and president Adam Edelstein, who took up the post in October 2023 after spending nearly five years with Munich Re Specialty Insurance as chief operating officer.

He previously spent seven years with Hiscox USA as COO. GUARD has nearly 1,200 employees and has more than 6,000 appointed independent agents.

Its subsidiaries also include AmGUARD, EastGUARD, NorGUARD and WestGUARD.

GUARD was acquired by Berkshire Hathaway subsidiary National Indemnity in 2012 and writes more than $2 billion in premium, largely focused on small business insureds.

Insurers have heavily retrenched from both the admitted and nonadmitted homeowners market in recent years, a trend that is expected to accelerate in the wake of January’s devastating wildfires affecting the extended Los Angeles region.

Last month, State Farm General Insurance Company warned it may have no choice but to continue scaling back its position in California if its emergency rate request is not approved, and even if it is signed off the carrier will not start writing new business in the state.