Rehabilitation of Wisconsin Reinsurance Corporation and 1st Auto & Casualty Insurance Company

​​​​​​​​​​​​​​Last Updated: November 2, 2023

​Background​

Wisconsin Reinsurance Corporation (WRC) is a property and casualty reinsurance company whose clients are mutual insurance companies located in Wisconsin, Arkansas, Illinois, Iowa, Missouri, and South Dakota. In Wisconsin, WRC is the reinsurer for 34 of Wisconsin's 44 town mutual insurers.

As part of WRC, 1^st Auto & Casualty Insurance Company (1^st Auto) offers direct coverage for personal auto, business auto, and personal/farm umbrella.

Many Wisconsin insurers, including WRC, experienced higher-than-expected losses in 2022 as severe storm events damaged property across the state. By the end of that year, WRC and 1^st Auto reported that they did not have the financial stability to continue operating and meeting their obligations in the foreseeable future.

In 2023, efforts to find additional capital to stabilize their financial position did not materialize for WRC and 1^st Auto. Both have indicated that their financial position has continued to deteriorate.

Due to these developments, the Office of the Commissioner of Insurance determined it was appropriate to take action to protect 1^st Auto's policyholders and town mutual insurers who get reinsurance from WRC by controlling the remaining assets of the compan​y through the rehabilitation process.

Frequently Asked Questions

• 1^st Auto Agents and Brokers​
  

• Creditors​​

• 1^st Auto Policyholders
  

• WRC Policyholders​
  

• ​Legislators​
  
  

WRC NAIC#: 30260

1st Auto NAIC#: 44725

Filing Date of Petition for Order for Rehabilitation: May 23, 2023

​Date of Signed Rehabilitation Order: June 21, 2023
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Rehabilitation Plan Framework

• ​WRC Rehabilitation Planning Meeting Slide De​ck​​
  

Rehabilitation Court Documents

• Notice of Verified Petition and Verified Petition for Order for Rehabilitation
  

• Motion for Temporary Injunctive Relief
  

• Proposed Order for Temporary Injunctive Relief

• Proposed Order for Rehabilitation
  

• Signed Order for Temporary Injunctive Relief ​
  

• Notice of Hearin​g

• ​ Wisconsin State Journal Affidavit of Publication

• USA Today Affidavit of Publication
  
• Certificate of Service​
  

• Order for Rehabilitation​​​

• Notice of Motion and Motion for Approval of Rehabilitation

• Rehabilitation Plan

• ​Proposed Order Approving Rehabilitation Plan​
• Order Approving Rehabilitation Plan​

Financial Statements

The financial statements listed below are as filed with the Office of the Commissioner of Insurance.

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Rehabilitation Notifications

• ​​​Agent or Broker - 1^st Auto & Casualty Insurance Company - 5/23/2023​
  

• Creditor - Wisconsin Reinsurance Corporation and 1^st Auto & Casualty Insurance Company - 5/23/2023​
  

• Insurer​ - Wisconsin Reinsurance Corporation - 5/23/2023​
  

• Policyholders and Claimants - ​1^st Auto & Casualty Insurance Company​- 5/23/2023​
  

• ​Reinsurer - Wisconsin Reinsurance Corporation and 1^st Auto & Casualty Insurance Company - 5/23/2023
  

• Shareholder​ - Wisconsin Reinsurance Corporation - 5/23/2023