COLUMBUS, Ohio, Aug. 16, 2019 /PRNewswire/ -- Demotech has downgraded the Financial Stability Rating® (FSR) of A, Exceptional, assigned to Florida Specialty Insurance Company to M, Moderate. This action was necessary despite potential transactions being pursued by the Company.
According to Joseph L. Petrelli, President, Demotech, "The Company filed its second quarter 2019 financial statement, reporting surplus in excess of the $10 million statutory minimum. The notes from the Company in its most recent financial statement included a comment regarding substantial doubt of the Company's ability to continue as a going concern given the current environment in the state of Florida and none of the transactions under consideration have been executed. The Company, albeit above the state minimum as to surplus, does not meet the financial metrics associated with an FSR of A."
Until this date, Demotech had sustained the previous FSR to facilitate the orderly analysis of proposals under consideration by the Company. However, despite the Company's plans to substantially de-risk its portfolio beginning in the fourth quarter of 2019 and its ongoing dialogue with the state of Florida Office of Insurance Regulation and potential suitors, a change in FSR is being made at this time.
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. Visit www.demotech.com for more information.
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