Texas-based property/casualty insurer New Century Insurance Co. has been declared insolvent and ordered into liquidation, according to a Travis County District Court ruling on September 3.
The court appointed Texas Insurance Commissioner Cassie Brown as liquidator, who in turn designated FitzGibbons and Co. Inc. as special deputy receiver.
The Texas Department of Insurance (TDI) said New Century lacked the admitted assets needed to cover its liabilities and fell below the minimum capital requirements set out in state law. The court ordered that all of the company’s policies be cancelled effective 11:59pm on October 3, 2025.
Until then, policyholders must continue paying premiums, which will be handled by the liquidator. The Texas Property and Casualty Guaranty Association (TPCGA) will oversee claim payments that would otherwise have been covered by New Century.
Under state law, the TPCGA provides a safety net for eligible policyholders when an insurer fails. The guaranty fund typically covers unpaid claims up to statutory limits, which are generally $300,000 per claim. Certain types of claims, such as amounts above the cap, punitive damages, or obligations to reinsurers, are not covered.
Policyholders are expected to maintain contact with the guaranty association for updates on claims handling and eligibility, as payments and processing may differ from those made directly by the insurer.
Regulatory filings showed the company had been struggling for years. Through the first half of 2025, New Century reported a net loss of $279,000 and a negative policyholder surplus of $6.35 million, according to Best’s Financial Report.
That deterioration followed a $11.4 million loss in 2024, which pushed its surplus into the red. The company’s surplus had already fallen sharply from $6.04 million in 2023 to negative $6.07 million in 2024.
New Century operated solely in Texas and, along with other underwriting entities of parent company RVOS Farm Mutual Insurance Co., has not been rated by AM Best since 2014. At that time, RVOS requested withdrawal from the rating process after its financial strength was downgraded due to rising underwriting losses tied to severe weather and fire-related risks.
The liquidation of New Century underscores the growing pressure on regional insurers from catastrophe exposure and secondary perils. A Best’s Special Report released this summer found that 20 insurers became impaired between 2019 and 2024 due to natural disasters, with most insolvencies concentrated in Florida and Louisiana.
Texas, which faces increasing losses from hail, wind, and wildfire, is now showing similar strain on smaller carriers with limited diversification. Analysts warn that more local and regional insurers could face solvency challenges if extreme weather events continue at the current pace, raising further questions about the long-term resilience of the state’s property insurance market.
