Demotech believes that financial stability can be independent of size and that small, well-managed property/casualty insurers can often be more financially stable than larger, highly leveraged insurers. Its Financial Stability Ratings are a leading indicator of the financial stability of an insurance company and the likelihood of an insurer’s survival.
Financial Stability Ratings of A” Double Prime; (Unsurpassed); A’ Prime (Unsurpassed); and A (Exceptional) are accepted by the major participants in the secondary mortgage marketplace. Demotech also issues ratings of S (Substantial), M (Moderate) and L (Licensed), with the L being its lowest rating for carriers whose financial ability is limited.
The Demotech model is quantitative. It is based on reported financial information and analytical information. Qualitative considerations such as “quality of management” are not factored into its rating process.
A list of companies with a Financial Stability Rating can be found at www.demotech.com.
Was this article valuable?
Here are more articles you may enjoy.
Florida Appeals Court Bars Release of ‘Trade Secret’ Info in Heritage Claims Litigation 
New Florida Property-Tax Cut May Bring an Unwanted Side Effect 
WSJ Wins Dismissal of Trump’s $10 Billion Defamation Suit 
More Florida Insurers Announce Rate Cuts for Auto, Homeowners, Condo Units From This Issue
