Demotech Downgrades Financial Stability Rating® Assigned to Hermann Sons Life

Columbus, Ohio, June 22, 2023: Demotech, Inc. has downgraded the Financial Stability Rating® (FSR) assigned to Hermann Sons Life to S, Substantial.  This level of FSR is assigned to insurers who possess substantial 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 Hermann Sons Life

Hermann Sons Life has provided for the financial protection of Texas families for more than 160 years.  They were founded by German immigrants who came to America in the 1800s for a better life.  Today, they honor that heritage, and they’re proud to say they are open to all members of their community who need insurance protection.  Hermann Sons Life has a strong history of member-owned governance and are the largest organization of their kind operating in only one state.  Thousands of Texans from all walks of life enjoy financial protection provided by Hermann Sons Life.  They operate as a non-profit fraternal benefits society.  Premiums collected from members is invested and returns are reinvested in their members and community through countless service initiatives such as a summer camp, grief camp, dance programs, a retirement home and disaster relief efforts.  All members belong to a lodge that offers opportunities for fellowship and service.

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 for additional information.

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