Florida Property Insurance: Northern Capital Loses Rating; HomeWise Consolidates
One fast-growing Florida homeowner insurer has had its rating pulled by its rating agency and reportedly halted new business while another domestic carrier is consolidating its business into one company from two.
Northern Capital Insurance Co. — named the fastest growing small company in the nation by Inc. Magazine in 2009 —did not come up with the capital it needed to retain its Financial Stability Rating of “A, Exceptional” from Demotech, Inc. by the deadline, so the ratings firm withdrew the rating on Feb. 18.
In the other move, HomeWise Insurance Group said it is consolidating all of its business into HomeWise Insurance Co. and will no longer be writing through HomeWise Preferred.
Northern Capital is solvent and could have its rating restored after it raises capital to bolster its surplus, which it is in the process of doing, according to Demotech.
Demotech also withdrew its rating of HomeWise Preferred Insurance Co. — but this time it was because this firm will no longer be writing business. Instead, its business will be assumed by its related subsidiary, HomeWise Insurance Co., which has boosted its surplus to $20 million, more than enough to keep its “A” rating from Demotech.