Safeco, a subsidiary of Liberty Mutual, has announced plans to exit several smaller insurance lines in California, citing increasing market risk and volatility. This strategic shift, set to unfold over the next two years, reflects the insurer’s efforts to recalibrate its business focus in the state.
While Safeco will maintain its home insurance offerings in California, it will discontinue new policies for condominium, renters, and watercraft insurance starting in early 2025. The move will also encompass certain home insurance products provided by other Liberty Mutual subsidiaries.
In a further step, Safeco will stop underwriting new policies for specialty vehicles, motorcycles, and non-good driver (standard) auto products beginning in 2026. Simultaneously, the company plans to phase out existing policies in these lines. This process will also impact policies already closed to new customers, including Liberty Mutual-branded condominium and renters insurance, which ceased accepting new business in 2023.
Safeco plans to focus its California business on core products, including auto, home, landlord, and umbrella insurance.
The decision comes amid a period of significant change in California’s property insurance market. Farmers Insurance recently reopened some property lines previously closed to new business, including homeowners, renters, and condominium policies, starting in December 2024.
In parallel, the California Department of Insurance is finalizing a series of reforms aimed at stabilizing the state’s property insurance market. These reforms, initiated in 2024, include new regulations permitting insurers to factor reinsurance costs into their rates if they expand coverage in high-risk areas. The measures are designed to address persistent market challenges and enhance the availability of insurance in underserved regions.
