Demotech confirms FSR for carriers FedNat Holding Company
Demotech has confirmed financial stability ratings (FSR) of A (exceptional) for FedNat Insurance Company, Maison Insurance Company and Monarch National Insurance Company.
This level of FSR is attributed to insurers who have exceptional financial stability linked to maintaining a positive surplus vis-à-vis policyholders, sufficient liquidity of invested assets, an acceptable level of financial leverage, provisions for claims and costs. Reasonable Claims Settlement (L&A) and realistic pricing.
Demotech founder and chairman Joe Petrelli noted that additional information has been taken into account to complete the financial statements and operating results for the second quarter of 2021.
“We obtained information through conversations and meetings with senior management that were not available at the time of the last statutory financial statements,” he said.
“Given our current understanding of 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 conjunction with the business’s immediate access to sufficient capital to honor or defend well-founded claims as they fall due.
“Including recent catastrophe losses and claims settlement costs, we make this FSR assertion based on our entire review of 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 of FedNat Holding Company, President of FedNat Insurance Company: “The company has experienced an unprecedented number of weather 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 greatly appreciate Demotech’s expertise in financial stability rating which recognizes the challenging environment in which we operate as well as our initiatives to improve future financial results. “
Petrelli added, “The rigorous, albeit costly, horizontal reinsurance program purchased by the companies has protected stakeholders, especially claimants.
“Policyholders from these insurers have been well served by the catastrophe reinsurance requirements associated with the award of an FSR from Demotech.”