Tx Regulators Place Porch’s Insurance Subsidiary Under Supervision Amid Vesttoo Fallout

Vesttoo fraudulent LOCs

Fallout from the bankruptcy of reinsurer Vesttoo Ltd. in the wake of fraud allegations are rippling through the insurance industry, with Porch Group announcing Tuesday that its insurance subsidiary, Homeowners of America Insurance Company, has been placed under temporary supervision by Texas regulators.

Best’s Commentary: Vesttoo Highlights Importance of Managing Counterparty Risk

Vesttoo fraudulent LOCs

With the Vesttoo fallout as a backdrop, a new AM Best commentary details leading bank issuers of collateral letters of credit (LOC) to (re)insurance companies, as well as companies with LOC exposures to China Construction Bank Corp., which has been linked to the ongoing situation.