The Centauri Specialty and National Insurance Companies have sustained a Financial Stability Rating of “A” (Exceptional) from Demotech following their acquisition by Applied Underwriters.
Demotech said its decision followed extensive examinations measuring claims paying ability, financial reserves and overall financial stability.
It says the Sarasota-based insurer, with over $200 million in annual premiums from policyholders largely concentrated in Florida and Hawaii, is rapidly expanding in the Carolinas and other Southern US markets through a growing network of independent agents and brokers.
According to Steve Menzies, Chairman of Applied Underwriters, the “A” rating supports the strategic plan undertaken by Applied to deepen its presence in the southern market through this acquisition, through Centauri’s recent acquisition of the renewal rights from Gulfstream, and by its recently announced Florida casualty insurance company transaction.
“Centauri is on solid footing and is newly enabled to capitalize upon the strength of Applied to expand into new target markets both geographically and in product sectors such as residential property and casualty programs, private flood insurance and new products now on the drawing board,” Menzies said.
“We are pleased that Demotech examined the Companies as thoroughly as it did and concluded that its strength is ‘exceptional’ in the best sense of the word.”
Rick Espino, President of Centauri, noted the overall market impact of Applied’s investment and the importance of the rating, stating that “Applied’s technical resources, from its leadership level to the corporate capacities of its Omaha operational teams, bolster our ability to serve clients with expanded offerings on excellent, “A” rated paper.
“We believe that we can outpace competitors whose financial base and current operational results cannot attract enough capital to have a meaningful market presence.
“The entire insurance scene for homeowners on the gulf coast and eastern seaboard will be favorably affected as Centauri and other companies like ours engage enterprises like Applied to ensure solvency standards are met, to pay claims creditably and fairly and to invest in excellence in insurance delivery and operation – an encouragement to regulators faced with the two-sided task of regulating and often restricting the very market that it seeks to grow and have flourish.
“We believe that Applied’s timely, revitalizing investment in Centauri will make a major difference in the future of insuring weather-catastrophe exposed homeowners.”