Does anyone remember Whitehall Mutual? AM Best downgraded them but Demotech assured us that the A rating stood solid. A week later the PA Insurance Dept declared them insolvent and they were liquidated. I would take AM Best analysis over Demotech.
Demotech has reviewed and rated Florida Family, its predecessor and insurance affiliates, since their inception in early 1996. Our reviews included every quarterly financial statement over that period of time, every annual statement, every preliminary reinsurance program and very final reinsurance program, independent audits, actuarial reports on loss and loss adjustment expense reserves, etc. Whatever we requested, management has forwarded.
Clearly, the Company is Florida focused. Yes, there were hurricanes or other weather related events in 2016, 2017, 2018 and 2019. In addition, reinsurance costs went up in 2019. Although the storms over the past recent years resulted in operating losses for Florida Family, this Company and its management team were there through the horrific seasons of 2004 and 2005.
While other rating agencies might ‘marvel’ at the underwriting process – rate increases, cancelations of policies in force, limiting new business, etc., Demotech understand the insurance process. We have watched Florida Family’s management team and its functional departments execute their duties at a high level for nearly 25 years. We see no reason for Demotech, producers, policyholders or any other third parties associated with Florida Family, to have concern about the financial stability of Florida Family. The management team has responded to the operating losses, is well positioned to sustain its business model and they will continue to insure Floridians in the future.
Joe, Thanks for clearing this up. I have known the Hardy family as well as many of FFM’s management team for 20 years and agree with you, they do know what’s going on and have a handle on the company, the policyholders and agents.
Oh wow…that’s not good. This company was one of the few stable AM Best rated HO carriers in Florida. The HO market is really doing poorly here.
Does anyone remember Whitehall Mutual? AM Best downgraded them but Demotech assured us that the A rating stood solid. A week later the PA Insurance Dept declared them insolvent and they were liquidated. I would take AM Best analysis over Demotech.
The full version of my comments to Amy O’Connor:
Demotech has reviewed and rated Florida Family, its predecessor and insurance affiliates, since their inception in early 1996. Our reviews included every quarterly financial statement over that period of time, every annual statement, every preliminary reinsurance program and very final reinsurance program, independent audits, actuarial reports on loss and loss adjustment expense reserves, etc. Whatever we requested, management has forwarded.
Clearly, the Company is Florida focused. Yes, there were hurricanes or other weather related events in 2016, 2017, 2018 and 2019. In addition, reinsurance costs went up in 2019. Although the storms over the past recent years resulted in operating losses for Florida Family, this Company and its management team were there through the horrific seasons of 2004 and 2005.
While other rating agencies might ‘marvel’ at the underwriting process – rate increases, cancelations of policies in force, limiting new business, etc., Demotech understand the insurance process. We have watched Florida Family’s management team and its functional departments execute their duties at a high level for nearly 25 years. We see no reason for Demotech, producers, policyholders or any other third parties associated with Florida Family, to have concern about the financial stability of Florida Family. The management team has responded to the operating losses, is well positioned to sustain its business model and they will continue to insure Floridians in the future.
Joe, Thanks for clearing this up. I have known the Hardy family as well as many of FFM’s management team for 20 years and agree with you, they do know what’s going on and have a handle on the company, the policyholders and agents.
Just because a company is rated C+ by Am Best, doesn’t mean that they are not A rated by Demotech.