COLUMBUS, Ohio, July 28, 2016 /PRNewswire/ -- According to Joseph Petrelli, President, Demotech, Inc., "While Sawgrass Mutual Insurance Company's reported financial position continues to reflect acceptable liquidity, realistic loss and loss adjustment expense reserves, limited financial leverage, and the purchase of a rigorous catastrophe reinsurance program for the 2016 hurricane season, the Company has been unable to resolve outstanding business issues associated with Cladium, Inc., a managing general agency, and Endurance Specialty Holdings, Ltd. This has resulted in litigation. In turn, litigation results in an unproductive deployment of managerial time in addition to the expense of litigation."
"We continue to communicate with the management of the Company and will monitor and subsequently reflect our observations in the Financial Stability Rating®. Although these types of situations are fluid, once litigation is in play, there are periods of intense activity followed by lulls in the action," says Bob Warren, CPCU, CPA, Client Services Manager, Demotech, Inc.