Demotech Withdraws the Financial Stability Ratings® Assigned to Tower Group Companies
Columbus, Ohio, December 24, 2013: Demotech, Inc. announces the withdrawal of its Financial Stability Ratings® (FSRs) assigned to insurers within the Tower Group: Kodiak Insurance Company, Massachusetts Homeland Insurance Company, Tower Insurance Company of New York and York Insurance Company of Maine. The FSRs were withdrawn, in large part, due to the most recent additional loss and loss adjustment expense reserve strengthening during calendar year 2013 and Tower Group’s inability to prepare and file reliable, timely financial information. As of this date, Demotech no longer follows or reviews any insurers owned by Tower Group.
Concurrently, Demotech advises that the FSRs assigned to Adirondack Insurance Exchange, Mountain Valley Indemnity Company, New Jersey Skylands Insurance Association and New Jersey Skylands Insurance Company remain under review. Accordingly to Joseph L. Petrelli, President and Co-founder, Demotech, Inc., “The three reciprocals and Mountain Valley Insurance Company are not part of the Tower Group pool. As reciprocals focused on homeowners and personal automobile insurance business, they have not been subjected to the loss and loss adjustment expense reserve strengthening that has adversely impacted the commercial lines carriers within the Tower Group. Although Tower Group owns the attorney-in-facts that manage and operate the carriers, the reciprocals are owned by their policyholders. Demotech has requested additional information to evaluate and confirm the ability of these four personal lines carriers to effectively serve their constituencies despite the issues that have impacted the Tower Group’s carriers.”