Let’s all congratulate Kevin M. McCarty the Florida Consumer Advocate for allowing Magnolia Insurance Company to take over 100,000 Citizens policies.
One of Florida’s young property insurance companies, Magnolia Insurance Co., has been stripped of its financial rating by rating firm Demotech, Inc.
Demotech assigned its Financial Stability Rating of A, Exceptional to Magnolia in October, based on what it said was extended discussion with the insurer’s management and the promise that a business plan with key changes would be implemented. The business plan called for reimplementation of processing systems, the addition of experienced insurance personnel, a significant capital contribution and a revision in the insurer’s reinsurance program, according to Demotech.
However, Ohio-based Demotech said that as of Dec. 2 it had not received Magnolia’s Sept. 30 financial report nor had it received a promised update of progress on the business plan implementation.