Demotech Affirms the Financial Stability Rating® Assigned to Ethio-American Insurance Company Inc.
Columbus, Ohio, October 2, 2023: The Financial Stability Rating® (FSR) of A, Exceptional, assigned to Ethio-American Insurance Company Inc. 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 Ethio-American Insurance Company Inc.
Headquartered in Atlanta, Georgia, Ethio-American Insurance Company, Inc. (EAI) is a commercial auto insurance company. The Company primarily targets taxi drivers, limousine drivers and other light commercial vehicle operator in Georgia and Tennessee. The owners first entered into the insurance business as American Cab Company Self Insurance in 1980 to reduce the cost of insurance for their taxi business. Over the last 38 years, they have grown through several reorganizations including the establishment of Ethio-American Insurance Company in 2003. For nearly four decades EAI has remained focused on being a low-cost commercial vehicle insurance provider with outstanding service to its customers.
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.
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