American Mercury Lloyds Insurance Company – A Guide

Choosing the right insurance company to protect your assets is an important decision. American Mercury Lloyds Insurance Company is a lesser-known regional insurer that operates predominantly in Texas and Oklahoma. This article provides an in-depth look at American Mercury Lloyds Insurance, including its history, financial strength, customer reviews, coverage options, and how it compares to other leading insurers.

Overview of American Mercury Lloyds Insurance

American Mercury Lloyds Insurance Company is a property and casualty insurer focused on homeowners and auto insurance policies for individuals and families. They currently operate in Texas and Oklahoma after previously serving policyholders in Louisiana as well.

Some key facts about American Mercury Lloyds:

• Headquarters: Austin, TX

• Founded: 1960

• Customers: Approx. 250,000 policyholders

• Products: Home, renters, condo, auto

• Coverage Area: Texas and Oklahoma

• AM Best Rating: B++ (Good)

• Website: americanmercury.com

As a Lloyds plan insurer, American Mercury Lloyds is comprised of independent underwriters who pool resources and share risks to provide coverage. This structure allows them to specialize in property risks common in Texas and Oklahoma.

American Mercury Lloyds Financial Strength

American Mercury Lloyds currently holds a B++ (Good) Financial Strength Rating from AM Best. This means they are considered to have sufficient financial resources to meet ongoing policy and claim obligations, but may be more vulnerable to adverse conditions than higher rated insurers.

Some positives regarding their financial position:

• Grew policyholder surplus to $85 million in 2021, up from $55 million in 2020

• Maintains low leverage and good liquidity ratios

• Solid operating performance and profitability in recent years

• Part of the Brookfield Asset Management group, a large global investment firm

While their balance sheet is relatively healthy, the B++ rating reflects concentration risk due to operating in only two states currently. Geographic diversification helps insurers spread risk.

Overall, American Mercury Lloyds appears to have sufficient claims paying resources, but those with substantial insurance needs may favor an insurer rated A- or higher by AM Best.

American Mercury Lloyds Customer Reviews

American Mercury Lloyds Insurance earns mixed customer feedback based on online reviews:

Pros

• Competitive rates and discounts available

• Good choice for basic HO-3 home insurance

• Fast underwriting and policy setup

• Responsive claims service for smaller losses

Cons

• Difficulty bundling home and auto policies

• Slow claims response for severe weather damage

• Limited policy and payment options compared to national insurers

• Fewer endorsements and extra coverages available

The majority of negative American Mercury Lloyds reviews focus on delayed claims handling and lowball damage estimates after major storms and floods. But they receive positive feedback for affordable rates and covering routine losses without issue.

American Mercury Lloyds Insurance Products

American Mercury Lloyds offers the core personal insurance products needed by most Texas and Oklahoma households:

Home Insurance: HO-3 and HO-A policies plus additional living expense coverage

Renters Insurance: Standard contents protection for rented homes and apartments

Condo Insurance: Covers owner-occupied condos in approved complexes

Auto Insurance: Basic liability and physical damage policies

Flood Insurance: Through a partnership with Wright National Flood Insurance

Unlike large national insurers, American Mercury Lloyds does not currently offer umbrella insurance, scheduled personal property coverage, identity theft protection, or mechanical breakdown insurance. Their products cater more to basic property and auto needs.

Is American Mercury Lloyds Right for You?

American Mercury Lloyds is best suited for these situations:

• Homeowners looking for basic HO-3 policies in TX and OK

• Renters or condo owners needing basic contents coverage

• Drivers seeking just state minimum auto liability limits

• Those needing a cheaper insurer due to tight budget

American Mercury Lloyds may not be the right choice if:

• You want bundling discounts on home & auto insurance

• Your property has high replacement cost or custom features

• You require specialty coverages like identity theft or umbrella insurance

• Financial strength and claims reputation are top priorities

For simple insurance needs they can provide affordable options. But those with more complex risks may prefer insurers like State Farm, Allstate, or Farmers Insurance.

American Mercury Lloyds Insurance vs. Major Competitors

How does American Mercury Lloyds compare to leading Texas and Oklahoma insurers? Here’s an overview:

Is American Mercury Lloyds Related to Mercury Insurance?

Despite the similar name, American Mercury Lloyds Insurance Company is not related to Mercury Insurance. Mercury Insurance is a leading national insurer while American Mercury Lloyds is a smaller regional company operating in just two states currently. They are completely separate entities.

The Bottom Line

American Mercury Lloyds Insurance provides basic property and auto insurance policies at affordable rates. But policyholders sacrifice broader coverage options, multi-policy discounts, and financial strength compared to national competitors. Weigh these factors carefully when choosing an insurer to protect your home and vehicles. For many homeowners, going with a highly-rated company may be the smarter long-term choice.