P&C Industry Uniquely Poised to Hold its Own

Columbus, Ohio, July 29, 2011:  In the unlikely event that the United States Government postpones the payment of interest or principal on obligations that come due in the near term, the Property & Casualty (P&C) insurance industry, as a whole, is uniquely positioned to hold its own.

Although the P&C insurance industry holds approximately $150 billion of U.S. government obligations, less than $50 billion matures in the next year.  Given that the amount of principal and interest due from the U.S. Government to the P&C industry in the next twelve months represents only 3% of the P&C industry’s aggregate cash and invested assets, which are approximately $1,325 billion, the P&C insurance industry will not be adversely impacted if there is a disruption in these cash flows.

About Demotech, Inc.

Demotech, Inc. is a financial analysis firm located in Columbus, Ohio.  Since 1985, Demotech has been serving the insurance industry by providing actuarial consulting and accurate and proven Financial Stability Ratings® (FSRs) for Property & Casualty insurance companies and Title underwriters.  FSRs are a leading indicator of the financial stability of a company.  Our rating process provides an objective baseline and insight into the future solvency of a company.  As an independent financial analysis and actuarial firm, Demotech has a proven track record of predicting financial stability in the insurance industry.  As the first company to have its rating process formally reviewed and accepted by Fannie Mae, Freddie Mac and HUD, Demotech has been leveling the playing field by offering Financial Stability Ratings® (FSRs) to insurers of all sizes.

Visit www.demotech.com for more information.