COLUMBUS, Ohio, Oct. 8, 2020 /PRNewswire/ -- Coefficient Insurance Company, a subsidiary of Verily Life Sciences, an Alphabet company, has earned a Financial Stability Rating® (FSR) of Aʺ, A Double Prime, Unsurpassed, from Demotech, Inc., the first rating agency to review and rate independent, regional, and specialty carriers.
As a tangible manifestation of their effort to assist self-funded employers facing rising and unpredictable healthcare costs, Coefficient will leverage Verily Life Science's strengths integrating hardware, software, and data science. Swiss Re Corporate Solutions, the commercial insurance unit of Swiss Re Group, has entered into a proposed transaction with Coefficient and Verily, which involves collaboration by Swiss Re Corporate Solutions by providing its risk knowledge, distribution capabilities, and reputation as a leader in the employer stop-loss market. The proposed transaction remains subject to closing conditions, including regulatory approvals.
Joseph Petrelli, ACAS, MAAA (MBA), President and Co-founder, Demotech, who coordinated the assignment of the FSR by Demotech, observed: "I have been in the insurance industry since 1974 and led Demotech to be the first to review and rate independent, regional, and specialty carriers, back in 1989. Over the ensuing thirty-one years, we reviewed thousands of carriers annually and assigned our Preliminary FSRs. More recently we became the 'go to' rating agency for InsurTechs. It will require an insurer associated with a company of Alphabet's substance to intersect and connect healthcare, data science, and technology to move the needle on healthcare cost inflation and predictability in the proper direction. With a strong balance sheet, data-driven yet innovative technology, a sophisticated insurance partner in Swiss Re Corporate Solutions, and a world class ultimate parent, Coefficient Insurance Company is uniquely positioned to bring solutions as well as stop-loss insurance to this marketplace."
Denny Weinberg, CEO of Coefficient, said about the Demotech rating process, "Coefficient is pleased to have received an A Double Prime rating from Demotech. It was a pleasure to work with Demotech throughout the rating process; they worked extremely efficiently and thoughtfully to understand Coefficient's business plan, balance sheet and financial forecasts and to provide Coefficient with a rating quickly."
About Demotech, Inc.
Incorporated in 1985, Demotech, Inc. is a financial analysis firm specializing in evaluating the financial stability of independent, regional, and specialty insurers. 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. Demotech reviews more than 400 insurers operating in the US. Visit www.demotech.com.
SOURCE Demotech, Inc.