Demotech Withdraws the Financial Stability Ratings ® Assigned to Tower Group Companies
COLUMBUS, Ohio, Dec. 24, 2013 /PRNewswire/ -- Demotech, Inc. announces the withdrawal of its Financial Stability Ratings® (FSRs) assigned to insurers within the Tower Group: Kodiak Insurance Company, Massachusetts Homeland Insurance Company, Tower Insurance Company of New York and York Insurance Company of Maine. The FSRs were withdrawn, in large part, due to the most recent additional loss and loss adjustment expense reserve strengthening during calendar year 2013 and Tower Group's inability to prepare and file reliable, timely financial information. As of this date, Demotech no longer follows or reviews any insurers owned by Tower Group.
Concurrently, Demotech advises that the FSRs assigned to Adirondack Insurance Exchange, Mountain Valley Indemnity Company, New Jersey Skylands Insurance Association and New Jersey Skylands Insurance Company remain under review. According to Joseph L. Petrelli, President and Co-founder, Demotech, Inc., "The three reciprocals and Mountain Valley Insurance Company are not part of the Tower Group pool. As reciprocals focused on homeowners and personal automobile insurance business, they have not been subjected to the loss and loss adjustment expense reserve strengthening that has adversely impacted the commercial lines carriers within the Tower Group. Although Tower Group owns the attorney-in-facts that manage and operate the carriers, the reciprocals are owned by their policyholders. Demotech has requested additional information to evaluate and confirm the ability of these four personal lines carriers to effectively serve their constituencies despite the issues that have impacted the Tower Group's carriers."
About Demotech, Inc.
Demotech, Inc. is a financial analysis firm specializing in evaluating the financial stability of regional and specialty insurers. Since 1985, Demotech has served the insurance industry by assigning accurate, reliable and proven Financial Stability Ratings® (FSRs) for Property & Casualty insurers and Title underwriters. FSRs are a leading indicator of financial stability, providing an objective baseline of the future solvency of an insurer. Demotech's philosophy is to review and evaluate insurers based on their area of focus and execution of their business model rather than solely on financial size. Visit www.demotech.com for more information.
SOURCE Demotech, Inc.