Demotech Affirms the Financial Stability Rating® Assigned to Providence Indemnity Insurance Company, Ltd
Columbus, Ohio, December 29, 2022: The Financial Stability Rating® (FSR) of A, Exceptional, assigned to Providence Indemnity Insurance Company, Ltd has been affirmed by Demotech, Inc. This level of FSR is assigned to insurers who possess exceptional financial stability related to maintaining positive surplus as regards policyholders, liquidity of invested assets, an acceptable level of financial leverage, reasonable loss and loss adjustment expense reserves (L&LAE) and realistic pricing.
FSRs summarize Demotech’s opinion of the financial stability of an insurer regardless of general economic conditions or the phase of the underwriting cycle. FSRs utilize statutory financial data based on insurance accounting principles prescribed or permitted by the National Association of Insurance Commissioners (NAIC). Since 1989, FSRs of A or better have been accepted by the major participants in the secondary mortgage marketplace.
About Providence Indemnity Insurance Company, Ltd
Providence Indemnity Insurance Company is a captive insurance company formed in 2010 to insure various long term care facilities in the Southeast. Providence is licensed in the Turks and Caicos Islands and operates in the United States as an alien insurer. The beneficial owners of Providence incorporated the captive in order to stabilize the placement of insurance amid a tumultuous market and create cost savings through conservative underwriting strategy and expense management. The insurance company provides general liability and professional liability for facilities that are owned and operated by the beneficial owners of Providence. Providence exceeds all solvency requirements in the Turks and Caicos Islands and maintains conservative investment policies consistent with most insurance companies.
About Demotech, Inc.
Demotech, Inc. is a financial analysis firm specializing in evaluating the financial stability of regional and specialty insurers. Since 1985, Demotech has served the insurance industry by assigning accurate, reliable, and proven Financial Stability Ratings® (FSRs) for Property & Casualty insurers and Title underwriters. Demotech’s philosophy is to review and evaluate insurers based on their area of focus and execution of their business model rather than solely on financial size. Demotech was the first to review and rate independent regional and specialty insurers. Demotech’s consistently increasing list of accreditations and acceptances has resulted in rating and reviewing more than 450 insurers operating in the US. As of 7/11/2022, Demotech, Inc. is registered with the U.S. Securities and Exchange Commission (SEC) as a nationally recognized statistical rating organization (NRSRO) in the class of ratings for insurance companies. Visit www.demotech.com for additional information.
# # #