Financial Stability Rating® of New Jersey Title Insurance Company Withdrawn
Columbus, Ohio, July 27, 2011: Demotech, Inc. has withdrawn the Financial Stability Rating® (FSR) of A’ (A Prime), Unsurpassed, assigned to New Jersey Title Insurance Company. This action was taken subsequent to meetings and conversations with management earlier this year. The Company has suspended issuance of new commitments and is focusing on the resolution of defalcations and claims received on issued policies.
Demotech met with New Jersey Title Insurance Company to discuss the defalcations that the Company had experienced. At that time, Demotech stated that the FSR assigned to the company would be modified or withdrawn if insurance or subrogation recoveries did not occur as anticipated by Company management or if the financial condition of the company deteriorated due to additional defalcations.
Based upon management’s current understanding of the financial impact of the defalcations in conjunction with the reporting requirements of the New Jersey Department of Banking and Insurance, it would appear that New Jersey Title Insurance Company can continue to meet its obligations as they come due.
FSRs 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.
About Demotech, Inc.
Demotech, Inc. is a financial analysis firm located in Columbus, Ohio. Since 1985, Demotech has been serving the insurance industry by providing actuarial consulting and accurate and proven Financial Stability Ratings® (FSRs) for Title underwriters and Property & Casualty insurance companies. Our rating process provides an objective baseline and insight into the future solvency of a company. As an independent financial analysis and actuarial firm, Demotech has a proven track record of predicting financial stability in the insurance industry. 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 Financial Stability Ratings® (FSRs) to insurers of all sizes.
Visit www.demotech.com for more information.