COLUMBUS, Ohio, Aug. 21, 2017 /PRNewswire/ -- Effective immediately, Demotech downgrades the Financial Stability Rating® (FSR) of A, Exceptional, assigned to Sawgrass Mutual Insurance Company to an FSR of L, Licensed. This action was necessary despite a number of potential transactions in negotiation by the Company.
According to Joseph L. Petrelli, President, Demotech, "The Company filed its initial year-end 2016 financial statement, reporting surplus in excess of $20 million, in a timely manner. The Company secured an effective reinsurance program prior to storm season. The focus of the Company was to identify suitors and negotiate a transaction that was favorable to their policyholders rather than write additional new business."
The deadline for an independent audit passed without Demotech receiving a copy. The second quarter 2017 financial statement, presented to us on August 16, 2017, and a revised year-end 2016 financial statement, present surplus and other financial metrics at levels that no longer support the current FSR. Concurrently, management has not communicated the most recent status of negotiations by the Company.
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.