Demotech Assigns Financial Stability Ratings to Encompass Floridian Insurers

Demotech Inc. has announced the assignment of Financial Stability Ratings of “A” (Exceptional) to Encompass Floridian Insurance Company (EFIC) and Encompass Floridian Indemnity Company (EFI).

The assignment of these Financial Stability Ratings® was a critical component to the positioning and structuring of Encompass Insurance’s Florida business.

According to Demotech, the “A” (Exceptional) ratings were based, in large part, upon the company’s disciplined business plan, which was to be implemented by an experienced management team, and an excellent reinsurance program designed to address the Florida property insurance marketplace.

A Financial Stability Rating summarizes Demotech’s opinion as to the financial stability of an insurer regardless of general economic conditions or the phase of the underwriting cycle. Financial
Stability Ratings are based upon statutory insurance accounting principles prescribed or permitted by the National Association of Insurance Commissioners. For more than a decade, Financial
Stability Ratings of “A” or better have been accepted by the major participants in the secondary mortgage marketplace, including the Fannie Mae, Freddie Mac and HUD.

Both companies are wholly owned subsidiaries of Allstate Floridian Insurance Company, a separate and distinct indirect subsidiary of Allstate Insurance Company, whose ultimate parent is The Allstate
Corporation. Encompass Insurance brand property/casualty products are sold exclusively through independent agents.

Latest Comments

• February 26, 2005 at 8:00 am

  Larry Peters says:

  Demotech's current procedure is to publish ratings of A or better only. I would worry about the companies that do not have a rating from them.
• February 25, 2005 at 10:12 am

  florida agent says:

  i've never seen Demotech give any other rating than an "A". Wonder what their criteria are, open for business and a heartbeat?