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Corporate Milestones

Demotech has been solving challenges for the insurance industry and challenges unique to individual companies since 1985. Our corporate milestones highlight the dedication and insight our people have demonstrated throughout our history.


Founded by Joseph L. Petrelli and Sharon M. Romano Petrelli to serve the financial analysis and actuarial services needs of regional and specialty insurers.


First to issue Financial Stability Ratings® (FSRs) for health maintenance organizations (HMOs).


First to issue FSRs for public entity liability self-insured pools through the development of our Management Audit Process.


First to review and rate independent regional and specialty insurance companies.

First to have Property & Casualty insurance company rating process formally reviewed and accepted by Fannie Mae.  An FSR of A or better eliminates the need for property insurance cut-through endorsements.


First to have Property & Casualty insurance company rating process formally reviewed and accepted by Freddie Mac.

Began offering Property & Casualty insurance companies and Title underwriters loss cost analysis and rate, rule and form filing assistance.

Responded to the National Association of Insurance Commissioners requirements for Property & Casualty insurers to submit Statements of Actuarial Opinion related to loss and loss adjustment expense reserves concurrent with the 1990 Property & Casualty annual statement.


First to analyze the financial position of each Title underwriter in the industry.


First to have Property & Casualty insurance company rating process formally reviewed and accepted by HUD.


Fannie Mae issued Title underwriter acceptance guidelines, naming Demotech as an approved Title underwriter rating service.


First to promulgate Commercial Real Estate Recommendations to provide financial due diligence of Title underwriters involved in larger real estate transactions.


Contacted by the Florida Office of Insurance Regulation when the property insurance market required newly established insurers to obtain ratings. Demotech developed evaluation procedures for the assignment of FSRs to newly formed companies.

Coordinated the first seminar regarding the implementation of Statements of Actuarial Opinion for Title underwriters on behalf of the Conference of Consulting Actuaries.


Co-authored the Commerce Clearing House publication describing the evolution of the Canadian Title insurance industry.

Demotech, Inc. and A. M. Best Ratings Comparison Study – Mark Kaminski, Ph.D.


Completed the initial loss and loss adjustment expense review of the Iowa Finance Authority – Title Guaranty Division.


Revitalized the Ohio Title Insurance Rating Bureau, Inc. (OTIRB).


Auto-Owners Insurance Group made umbrella insurance available to insurers earning an FSR of A or better.

Assisted the North Carolina Title Insurance Rating Bureau with the development and filing of Closing Services coverage.

Assisted OTIRB with its first rate revision since 1980.


Published Serious about Solvency – Financial Stability Rating® Survival Rates 1989 through 2004.

Introduced Demotech Performance of Title Insurance Companies and Quarterly Updates, presenting consolidated statutory financial information for the Title insurance industry.


HUD approved Demotech’s rating process for general and professional liability insurance under Notice H04-15, Professional Liability Insurance for Section 232 and 223(f) Programs.


Joseph L. Petrelli, ACAS, MAAA, FCA, authored What We’ve Got Here Is a Failure to Communicate – How Traditional Financial Reporting Contributes to Misunderstanding of Title Insurance Loss Activity.

Introduced Comparative Financial Observations.


Introduced its Company Classification System.

Designated as the Official Research Partner of Insurance Journal.

Expanded operations into a larger facility reflecting our increased capacity to serve our clients.


Introduced Insurance Agents’ Errors and Omissions Insolvency Gap Legal Defense Coverage.


Expanded the Insolvency Gap Coverage to include indemnity as well as legal defense.


Celebrated 25th Anniversary.


The Florida State University published “A Comprehensive Examination of Insurer Financial Strength Ratings” comparing and contrasting Demotech to A.M. Best, Moody’s, Standard & Poor’s and Fitch.


Financial Stability Ratings® added to SNL Financial’s products,


A leading insurance agents’ errors and omissions insurance carrier retained Demotech to perform a financial due diligence on the carriers that request an extension of insolvency coverage.

Introduced Stakeholder Team Accomplishment Recognition Award to identify Property & Casualty insurers that successfully addressed the diverse needs of all corporate stakeholders.


Achieved the milestone of more than 400 insurance entities being actively reviewed, rated and monitored.

Fannie Mae MultiFamily accepted captive insurers and risk retention groups rated A or better by Demotech as regards professional and general liability insurance coverage for senior housing facilities.


Celebrated 30th Anniversary.

Published inaugural issue of The Demotech Difference.


Financial Stability Ratings® of S or better accepted by a major underwriter of insurance agents’ Errors and Omissions insurance.

Held Insurance Summit 2016 at The Wild Dunes in South Carolina.

Released a series of seminars related to understanding the statutory Property and Casualty annual statement (

Approved as a provider of insurance agent continuing education in Ohio. Ohio State Treasurer Josh Mandel was a guest lecturer at our initial session.


Co-sponsored the Super Regional P/C Insurer Conference 2017 held in Lake Geneva, WI.

National Council of Insurance Legislators passed Model Act to Support Regulation of Insurance by Requiring Competition Among Rating Agencies.  Demotech was named a ‘competent rating agency.’


Co-sponsored the Super Regional P/C Insurer™ Conference 2018 held in Lake Geneva, WI.

“Report on Calculation and Validation of Insurer Impairment Rates for Demotech, Inc.” published by Michael M. Barth, The Citadel, and Robert W. Klein, Georgia State University, February 2018.

Introduced SPEQUELLAE, the first service to independently measure and identify the quality of pretax statutory earnings reported for a calendar year. The SPEQUELLAE service is an acronym created by Demotech: Statutory, Pretax, Earnings, Quality, Using, Emerging, Loss, Loss Adjustment Expense, Estimates.

Amended Substitute Senate Bill No. 273 was passed in Ohio to specifically reference Demotech, Inc. as an insurance rating agency within the Ohio statutes.


Initiated the inaugural ILEAD Conference at Easton, Columbus, Ohio.

30th anniversary as first to review and rate independent, regional and specialty insurers.

Lemonade Insurance Company, LMND, went public with a Demotech FSR and no other rating.


Demotech became the first to initiate coverage of Health Care Sharing Ministries and introduced its FbSR certification symbolizing our Faith Based Sharing Review™.

Readership of The Demotech Difference, our quarterly publication focused on the insurance and reinsurance industry, exceeded
22, 000 professionals.

Granular Insurance Company, previously Coefficient Insurance Company, whose ultimate parent is Alphabet, Inc. (Google), elected to be rated by Demotech.

A Review of Cole, He, McCullough (2011) “A Comprehensive Examination of Insurer Financial Strength Ratings.” “Barth and Klein (2018): Report on Calculation and Validation of Insurer Impairment Rates for Demotech, Inc.” published by Doug Voss, Ph.D.


Differentiation of Demotech Financial Stability Ratings published by Michael A. Cohen, MBA, Cohen Strategic Consulting.  Cohen’s experience includes the New Jersey Department of Banking and Insurance as well as Vice President, A. M. Best Company.


On July 11, 2022, Demotech was registered with the U.S. Securities and Exchange Commission as a nationally recognized statistical rating organization (NRSRO) in the class of ratings for insurance companies.