Financial analysis firm Demotech has affirmed the financial stability of A, Exceptional, assigned to Gulfstream Property & Casualty Insurance Company.
Demotech’s president and co-founder Joseph Petrelli said the fine management team at Gulfstream invited Demotech to review holding company and affiliated entity financials in an effort to better understand how the insurer had positioned itself to address the myriad issues facing the residential property insurance markets in Florida.
Given the breadth and scope of their capability to honor their commitment to policyholders, Petrelli said Demotech needed additional time to digest their additional information.
“Gulfstream is an example of why a brief delay in rating affirmation should not be made into something bigger than it is,” said Sharon Romano Petrelli, CPCU, AIAF, CCP, ARC, Vice president and co-founder, Demotech.
“The management team at Gulfstream has met or exceeded our financial metrics for the past several years. Their enterprise risk management program, particularly the facets focused on litigation management and reinsurance purchasing, has been effective.
“With experienced personnel leading the key functional areas of claims, underwriting, marketing, reinsurance, loss and loss adjustment expense reserving and pricing, Gulfstream’s business model keeps them at the A level, despite increases in reinsurance costs anticipated in 2020, and Florida remaining on the American Tort Reform Foundation’s Watch List.”
Gulfstream Chief Executive Officer Ron Natherson added, “We are extremely appreciative of the opportunity to work so closely with our colleagues at Demotech, and for their acknowledgement and affirmation of our Financial Stability Rating® (FSR) of A, Exceptional.
“We continue to support the strategy of long-term, responsible growth in service to our many policyholders and agency partners.”
