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Only 2 Florida Domestic Insurers Lose Demotech Ratings Thus Far
Two domestic property insurers no longer writing in the state — one by choice, the other forced– are the only two Florida insurers negatively affected thus far by a rating agency’s review of small domestic insurers.
In a May 21 report, actuarial services and rating firm Demotech, which specializes in rating newer insurers including the 60 start-ups in Florida, has affirmed or upped its positive Financial Stability Ratings (FSR) of A and better for some 22 insurers but is still in the process of reviewing the ratings of 36 other insurers.
Demotech has issued no rating for Coral Insurance, which is under state receivership due to financial difficulties. All of Coral’s policies are in the process of being cancelled.
Ohio-based Demotech also has withdrawn the rating of USIC of Florida, a company with about $3.5 million in writings that voluntarily started winding down its business last year after being denied rate increases.
