Columbus, Ohio, October 7, 2021 / PRNewswire / – Financial Stability RatingsÂ® (FSR) of A, Exceptional, assigned to FedNat Insurance Company, Maison Insurance Company and Monarch National Insurance Company have been confirmed by Demotech, Inc. This level of FSR is awarded to insurers who possess exceptional financial stability associated with maintaining a positive surplus with respect to insured, sufficient liquidity of active investments, an acceptable level of financial leverage, reasonable reserves for losses and loss settlement costs (L & LAE) and realistic pricing, to name a few critical parameters.
Founder and President of Demotech, Joe petrelli, noted that additional information has been considered to supplement the financial statements and operating results for the second quarter of 2021. We obtained information through conversations and meetings with senior management that was not available at timing of the last statutory financial statements. Given our current understanding of the revisions to the company’s business model, in anticipation of the favorable impact of the efforts on the Company’s operating plan, availability of capital and future operating results, in In conjunction with the Company’s immediate access to sufficient capital to honor or defend meritorious claims as they fall due, including recent disaster losses and claims settlement costs, we make this affirmation of the financial stability ratingsÂ® based on all of our review of the June 30, 2021 operating results and management actions. Any future assertions will require demonstrable evidence of the impact of the revisions on the financial stability of the company.
According to Mike Braun, President and CEO, FedNat Holding Company, President, FedNat Insurance Company, â€œThe company has experienced an unprecedented amount of weather-related events in the past eighteen months, more than in its nearly thirty years. years of activity. FedNat, with the support of its reinsurance partners, continues to provide quality and timely service to all of our policyholders who have been affected by this weather.We very much appreciate Demotech’s expertise in financial stability rating which recognizes the difficult environment in which we operate as well as initiatives to improve future financial results.
Petrelli also said: â€œThe rigorous, albeit costly, horizontal reinsurance program purchased by the companies has protected stakeholders, especially claimants. Policyholders of these insurers have been well served by the catastrophe reinsurance requirements associated with the assignment of a financial stability rating.Â® from Demotech. “
About Demotech, Inc.
Demotech, Inc. is a financial analysis firm specializing in assessing 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.Â® (FSR) for property and casualty insurers and underwriters. FSRs are a leading indicator of financial stability, providing an objective basis for the future solvency of an insurer. Demotech’s philosophy is to review and assess insurers based on their area of â€‹â€‹interest and the execution of their business model rather than just on their financial size. Demotech was the first to review and assess independent regional and specialty insurers. Demotech’s ever-growing list of accreditations and acceptances has evaluated and rated more than 400 insurers operating in the United States. Visit www.demotech.com for more information.
About FedNat Holding Company
FedNat Holding Company is a regional insurance holding company that controls virtually all aspects of the insurance underwriting, distribution and claims processes through our subsidiaries and our contractual relationships with independent agents and agents. generals. The Company, through its wholly owned subsidiaries FedNat Insurance Company, Maison Insurance Company and Monarch National Insurance Company, is focused on providing insurance to homeowners Florida, Texas, Louisiana, Alabama, Caroline from the south and Mississippi. More information is available at https://www.fednat.com/investor-relations.
SOURCE Demotech, Inc.