National General Holdings's Business Segments

We are a specialty personal lines insurance holding company. Through our subsidiaries, we provide a variety of insurance products, including personal and commercial automobile, homeowners, umbrella, recreational vehicle, supplemental health, lender-placed and other niche insurance products. We sell insurance products with a focus on underwriting profitability through a combination of our customized and predictive analytics and our technology driven low cost infrastructure.

Our automobile insurance products protect our customers against losses due to physical damage to their motor vehicles, bodily injury and liability to others for personal injury or property damage arising out of auto accidents. Our homeowners and umbrella insurance products protect our customers against losses to dwellings and contents from a variety of perils, as well as coverage for personal liability. We offer our property and casualty ("P&C") insurance products through a network of approximately 22,000 independent agents, a number of affinity partners and through direct-response marketing programs. We have approximately 2.8 million P&C policyholders.

National General Holdings Corp: Detailed Overview of Segments, Products, and Services

Property and Casualty (P&C) Segment
The Property and Casualty segment of National General Holdings Corp is a crucial component of its operations, focusing on niche markets within the insurance landscape. This segment offers a diverse array of insurance products that cater to various consumer needs, with a strong emphasis on utilizing multiple distribution channels.

1. Products Offered
- Nonstandard Automobile Insurance: Primarily sold through an independent agency channel, this product is designed for individuals who may not qualify for standard coverage due to factors such as driving history or credit rating.
- Standard and Preferred Auto Insurance: Coverage available for customers that meet certain risk profiles, allowing for a broader customer base.
- Motorcycle Insurance: Tailored policies for motorcycle owners, covering accidents, theft, and property damage.
- Commercial Vehicle Insurance: Insuring businesses that operate vehicles as part of their economic activities.
- Homeowners Insurance: Protects homeowners against risks such as fire, theft, and liability.
- Umbrella Insurance: Provides additional liability coverage beyond the limits of the insured’s other policies.

2. Underwriting and Pricing Strategy
National General Holdings employs a sophisticated approach to underwriting and pricing, driven by analytics. Key aspects include:
- Data Analysis: The company utilizes extensive historical data and predictive analytics to forecast expected losses and establish premium rates that align with its profit targets.
- Collaboration among Teams: A synergistic relationship between product development, analytics, and actuarial teams enhances pricing precision, enabling them to match rate to risk with detailed segmentation.
- RAD0 Underwriting Pricing Tool: The proprietary RAD0 tool represents a leap forward in pricing strategy by incorporating advanced predictive modeling, credit scoring, and lifetime value assessments. This tool provides a competitive edge, enhancing pricing accuracy over an insurance policys lifespan.

Accident & Health (A&H) Segment
The Accident & Health segment, established in 2012, focuses on providing supplemental health insurance products, addressing gaps left by standard health insurance plans. The key strategies include a diverse distribution network aimed at maximizing accessibility to consumers.

1. Distribution Channels
- Direct Sales: Insurance products are sold directly to consumers through the company’s in-house general agency.
- Independent Agents: Collaborations with independent agents expand reach and access to a broader client base.
- Wholesale Channels: Utilizing other general agents and Managing General Underwriters (MGUs) enhances product distribution.
- Worksite Insurance: Partnerships with employers facilitate the provision of insurance through workplace benefits, accommodating employees needs.

2. Product Offerings
National General’s A&H segment provides a comprehensive portfolio tailored to meet specific healthcare needs, including:
- Supplemental/Ancillary Healthcare Policies: These products aim to mitigate high out-of-pocket expenses associated with major medical insurance.
- Specialty Accident Policies: Coverage designed for specific accident-related incidents, providing additional safety nets for consumers.
- Short-Term Individual Major Medical Insurance: Non-PPACA regulated policies that offer affordable healthcare solutions, serving as a transitional option to more comprehensive coverage.
- Self-Insurance Programs for Small Employers: Tailored solutions that enable small businesses to manage healthcare costs effectively through self-insured arrangements.

3. Market Positioning
The introduction of the Patient Protection and Affordable Care Act (PPACA) has reshaped the healthcare insurance landscape. National General Holdings aims to fill the gaps that exist with supplemental products, specifically focusing on:
- Providing economical alternatives to traditional group and individual policies that may not fully meet consumer needs.
- Expanding access to insurance for individuals and groups that may struggle to obtain affordable coverage through conventional channels, ensuring that a wider array of consumers can benefit from tailored healthcare solutions.

In summary, National General Holdings Corp stands out through its strategic focus on niche markets, innovative distribution methods, and sophisticated pricing models, positioning itself as a significant player in both the Property and Casualty and Accident & Health insurance sectors.