Menu

Reinsurance News

Demotech affirms FSR of FedNat Holding Company carriers

11th October 2021 - Author: Katie Baker

Demotech has affirmed the Financial Stability Ratings (FSR) of A (Exceptional) for FedNat Insurance Company, Maison Insurance Company, and Monarch National Insurance Company.

demotech-inc-logoThis level of FSR is assigned to insurers who possess exceptional financial stability related to maintaining positive surplus as regards policyholders, sufficient liquidity of invested assets, an acceptable level of financial leverage, reasonable loss and loss adjustment expense reserves (L&LAE) and realistic pricing.

Demotech founder and President, Joe Petrelli, noted that additional information was considered to supplement the Q2 2021 financial statements and operating results.

“We obtained information through conversations and meetings with executive management that was not available at the time of the most recent statutory financial statements,” he said.

“Given our current understanding of the revisions in corporate business model, in anticipation of the favourable impact of the efforts on the company’s operating plan, the availability of capital, and future operating results, in conjunction with the company’s immediate access to sufficient capital to honour or defend meritorious claims as they come due.

“Including the recent catastrophe losses and loss adjustment expenses, we issue this affirmation of the FSR based upon the totality of our review of the June 30, 2021 operating results and actions of management. Any future affirmations will require demonstrable evidence of the impact of the revisions on the company’s financial stability.”

According to Mike Braun, Chief Executive Officer, FedNat Holding Company, President, FedNat Insurance Company: “The Company has experienced an unprecedented amount of weather related events over the past eighteen months, more than has been experienced in its nearly thirty years of business.

“FedNat, along with the support of its reinsurance partners, continues to provide quality and timely service to all of our policyholders that have been impacted by this weather.

“We very much value Demotech’s leading financial stability rating expertise that recognises the challenging environment in which we operate as well as our initiatives to improve future financial results.”

Petrelli added: “The rigorous, albeit expensive, horizontal reinsurance program purchased by the companies protected stakeholders, particularly claimants.

“The policyholders of these insurers have been well-served by the catastrophe reinsurance requirements associated with the assignment of an FSR from Demotech.”

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
Atrium adds Michael Cusition to Marine team

Atrium Underwriting,, the managing agent for Lloyd’s Syndicate 609, has announced the appointment of Michael Cusition as Marine Underwriter, reporting...

Close