Demotech Affirms the Financial Stability Rating® Assigned to Hermitage Insurance Company

Columbus, Ohio, January 22, 2013: The Financial Stability Rating® (FSR) of A’ (A Prime), Unsurpassed, assigned to Hermitage Insurance Company has been affirmed by Demotech, Inc.  This level of FSR is assigned to insurers who possess unsurpassed 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 Hermitage Insurance Company

Through its subsidiaries, collectively referred to as Tower Group Companies, the group is a leading provider of diversified niche-oriented property and casualty insurance products and services. Tower is recognized throughout the industry for their innovative and responsive approach to business, exceptional underwriting performance, financial strength and stability.  Tower Group Companies delivers a broad range of product lines across various industries using multiple distribution channels in select market segments. Specifically, Tower provides personal insurance products to individuals and commercial insurance products to small- to medium-sized businesses through a dedicated team of retail and wholesale agents. The company also offers specialty products on an admitted and non-admitted basis, as well as the specialty services through a network of program underwriting agents.

Hermitage Insurance Company is domiciled in the State of New York and commenced business on November 20, 1985.

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.  FSRs are a leading indicator of financial stability, providing an objective baseline of the future solvency of an insurer.  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.  This philosophy was the catalyst for the Demotech Company Classification System, which was published in Insurance Journal, in order to stratify and categorize insurers into operational categories.  Visit for more information.

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