New Century Insurance Company, a Texas-only property and casualty insurer, has been placed into liquidation after a court ruled it insolvent. The Travis County District Court in Austin made the decision on September 3, following findings that the company’s assets are not enough to cover its liabilities. As a result, the Texas commissioner of insurance has been named the liquidator to oversee the winding down of the company’s operations.
The insurer’s financial troubles mean that it no longer meets the capital requirements set by Texas insurance laws. This prompted the court’s order to protect policyholders and creditors. New Century’s insurance policies will be canceled on October 3, 2025, at 11:59 p.m., giving policyholders some time to prepare for the change.
To manage the liquidation process, Commissioner Cassie Brown has appointed FitzGibbons and Company, Inc. as the Special Deputy Receiver. This company will handle claims and keep track of the estate during this period. If policyholders have new claims, they should report them directly to FitzGibbons.
For those who hold policies with New Century, the Texas Property and Casualty Insurance Guaranty Association (TPCIGA) will step in to cover any claims that fall under its coverage limits. This agency acts as a safety net to ensure policyholders aren’t left entirely without protection.
This event is a reminder of how important it is to keep an eye on financial health in the insurance world, especially for companies operating in a single state. Policyholders will now need to look for new coverage as New Century exits the market.