COLUMBUS, Ohio, July 20, 2015 /PRNewswire/ -- Demotech, Inc. assigned a Financial Stability Rating® (FSR) of A, Exceptional, to Ethio-American Insurance Company. The assignment of the FSR occurred after a series of discussions with officers and employees of the Company. This level of FSR is assigned to insurers who possess exceptional financial stability related to maintaining positive surplus as regards policyholders, liquidity of invested assets, an acceptable level of financial leverage, reasonable loss and loss adjustment expense reserves (L&LAE) and realistic pricing.
This FSR was assigned based upon the results and observations gained during an onsite meeting, which included a discussion of financial results, a review of the statement of actuarial opinion with the principals of Actuarial Insurance Consultants, Ltd., and an analysis of claims handling and payment procedures.
FSRs summarize Demotech's opinion of the financial stability of an insurer regardless of general economic conditions or the phase of the underwriting cycle. FSRs utilize statutory financial data based on insurance accounting principles prescribed or permitted by the National Association of Insurance Commissioners (NAIC). Since 1989, FSRs of A or better have been accepted by the major participants in the secondary mortgage marketplace.
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.