Demotech Completes its Review of Third Quarter Title Financial Data and Reinsurance, Agency and Defalcation Prevention Information

Columbus, Ohio, December 1, 2011: Demotech, Inc. has affirmed the Financial Stability Ratings® (FSRs) assigned to Title underwriters.  Affirmation of the FSRs assigned to Title underwriters is based on a review of third quarter 2011 statutory financial information as well as a review of reinsurance agreements, agency appointment guidelines, agency review procedures and defalcation prevention procedures for regional Title underwriters.

In its annual review of reinsurance arrangements, agency appointment guidelines, agency review procedures and defalcation prevention procedures for regional Title underwriters, Demotech found no material issues pertaining to established practices and procedures.  Please note, this is not a guarantee that no defalcations will occur, but rather that regional Title underwriters have documented processes and procedures in place to prevent and mitigate the impact from such an event.

FSRs are a leading indicator of the financial stability of Title underwriters and present Demotech’s opinion of the ability of the insurer to meet its insurance related obligations based upon our assessment of financial information.  FSRs are not an endorsement of any particular insurer or its products.  Insureds and agents need to independently evaluate their relationship with a particular insurer as well as the applicability of that insurer’s products to the needs of the insured or agent.

Visit www.demotech.com for a complete list of the FSRs assigned to Title underwriters.

About Demotech, Inc.

Demotech, Inc. is a financial analysis firm headquartered in Columbus, Ohio.  Since 1985, Demotech has been serving the insurance industry by providing actuarial analysis and Financial Stability Ratings® (FSRs) for Property & Casualty insurers 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 firm, Demotech has a proven track record of predicting long-term financial stability.  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 FSRs to regional and specialty insurers.

Visit www.demotech.com for more information.