Financial Stability Ratings® of Encompass Floridian Companies Withdrawn
Columbus, Ohio, July 21, 2011: Demotech, Inc. has withdrawn the Financial Stability Ratings® (FSRs) of A’ (A Prime), Unsurpassed, assigned to Encompass Floridian Insurance Company and Encompass Floridian Indemnity Company. These actions were taken at the request of the two Allstate subsidiaries. The withdrawal of these two FSRs reduces the number of carriers writing homeowners insurance in Florida that have been designated as Stable by Demotech to 51. Demotech continues to review and rate carriers writing all lines of business in all states.
Demotech’s President, Joseph L. Petrelli, stated that “although these are two financially stable companies, management did not seek to renew our review and analysis process for another year. Consistent with their request, our courtesy extension of the FSRs during the review process has been withdrawn.”
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, including Fannie Mae, Freddie Mac and HUD.
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 Property & Casualty insurance companies and Title underwriters. FSRs are a leading indicator of the financial stability of a company. 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.