Effective 05/26/2023 Velocity will cease writing new business and will begin the process of exiting all homeowner programs.

Another carrier is leaving Florida. Where does this end?

Velocity Risk Underwriters, LLC. After careful consideration and evaluation of various factors, we have made the difficult decision to permanently exit the homeowner's market.

It’s worth noting that Velocity Risk was an MGA created by specialist insurance-linked securities (ILS) investment manager Nephila Capital, also a Markel subsidiary.

ISIC was an insurer used for program business that Velocity Risk underwrote on behalf of Nephila ILS capacity, while State National provided the fronting carrier.

A majority stake in Velocity Risk was sold to Oaktree by Nephila Capital at the end of 2021.

Nephila is still a capacity provider to Velocity Risk, but this acquisition appears to be the MGA taking ownership of a carrier that played a key role as a conduit between the capital markets and Velocity Risk cat exposed property program business.