Demotech, Inc.: Hit pieces are the price we pay for thought leadership and excellence

COLUMBUS, Ohio , Aug. 14, 2025 /PRNewswire/ -- With the announcement of Demotech, Inc's 40^th anniversary on September 9, 2025, Demotech President and Co-founder Joseph L. Petrelli, released a statement referencing the company's verified track record on carrier survival, whether measured by gross impairment rate or net impairment rate, which at comparable rating levels, provides results that rival any other insurance rating service. His statement also addresses recent media push back on the company's ratings.

Petrelli shares his opinion: "In 1989, we entered the insurance rating sector by demonstrating that independent, regional and specialty insurers could be reviewed and rated. Our process analyzed their business model, execution of that business model and the complementary nature of the applicable reinsurance program. Today, despite a decades-long track record as good as anyone's, hit pieces and resistance to multiple, competent rating agencies, whether Demotech or another service, remain in place. Hit pieces may be targeting us because we uniquely review and rate more insurers in the US than any alternative to the functional monopoly." 

Petrelli said, "I used Wiktionary's definition of 'hit piece': 'A published article aiming to sway public opinion, especially by presenting false or biased information in a way that appears objective and truthful.' Any false or biased information in a hit piece aimed at us, whether a past, present or future hit piece, can or has been refuted with facts – facts that were readily available to the authors of the hit pieces as well as facts that we could have provided."

"As the first to review and rate independent, regional and specialty insurers, back in 1989, we have a long, important history. In addition to the Demotech rated carriers adding capacity to property insurance, title insurance and senior care markets in every state, 'Demotech alumni' – carriers that are now publicly traded yet came into existence by being Demotech rated – write billions of dollars of coverage protecting trillions of dollars of value in the US."

"Another attempt to sway public opinion by presenting information in a way that appears to be objective was the creation of 'counterfactual ratings' as a surrogate for A.M. Best ratings to be compared to actual Demotech ratings. These made-up ratings were never promulgated, never issued and never existed. Why make up ratings, imply they would have been assigned by another entity, and then compare the made-up ratings to actual ratings, when hundreds of actual ratings are readily available? Wiktionary nails the answer: to sway public opinion by presenting biased information in a way that appears objective. Head-to-head comparisons of factual ratings issued by both parties would have presented the complete opposite of the comparison of made-up ratings to our actual ratings. Reality was inconsistent with the narrative, so counterfactual ratings needed to be generated."

Sharon Petrelli, CPCU, AIAF, CCP, ARC, Demotech vice president and co-founder, stated: "If anyone has a question about anything that they have read or heard, contact us and ask your question. As Winston Churchill once said, 'A lie gets halfway around the world before the truth has a chance to get its pants on.' Arthur Schopenhauer said: 'All truth passes through three stages: First, it is ridiculed; second, it is violently opposed; and third, it is accepted as being self-evident.' That Demotech more than holds its own on insurer ratings has it passing through stage two – violently opposed. We are headed toward 'self-evident' as the facts emerge and speak for themself. As those opposed to competition in insurer ratings seem willing to do or say anything to eliminate us, despite the comparability of our track record, Demotech invites comparisons and analysis that are based upon facts."

About Demotech, Inc. 
Established in 1985, Demotech, Inc. is a financial analysis firm located in Columbus, Ohio. Demotech has served the insurance industry by providing objective and independent Financial Stability Ratings® (FSRs) for Property & Casualty insurance companies, Life & Health insurance companies, and Title underwriters, among others. As the first company to have its rating process formally reviewed and accepted by Fannie Mae, Freddie Mac, and HUD, Demotech has been leveling the playing field by offering FSRs to insurers of all sizes. As of July 11, 2022, Demotech is registered with the U.S. Securities and Exchange Commission (SEC) as a nationally recognized statistical rating organization (NRSRO) in the class of ratings for insurance companies. Visit www.demotech.com for additional information.

SOURCE Demotech, Inc.