HCI-sponsored reciprocal insurer, Condo Owners Reciprocal Exchange (CORE), has secured a Financial Stability Rating of ‘A’, Exceptional, from Demotech.
Paresh Patel, HCI’s chairman and CEO, commented, “HCI has had a positive long-term relationship with Demotech that extends back over 15 years when Demotech initially provided a rating to HCI insurance subsidiary, Homeowners Choice Property & Casualty Insurance Company, before it launched operations in Florida in 2007.
“We appreciate the continued support we’ve received from Demotech each time we’ve formed a new carrier, including the latest formation of CORE.”
In November of 2023, the Florida Office of Insurance Regulation (OIR) approved CORE to form as a property and casualty reciprocal insurer in Florida. The company later obtained a certificate of authority from Florida regulators, allowing it to transact insurance in the state.
HCI explained that a “reciprocal insurer” is an unincorporated aggregation of at least 25 policyholders operating through an attorney in fact to provide insurance among themselves.
“A reciprocal insurer is essentially owned by its policyholders, but its operations such as underwriting, claims and management services are provided by an attorney-in-fact for a predetermined management fee,” the firm added.
Each of the three carriers HCI has formed are currently rated ‘A’, Exceptional by Demotech.
In related news, back in December of last year, HCI closed the underwritten public offering of 1,150,000 shares of its common stock, raising $85 million.
