Financial Stability Rating® Assigned to American Coastal Insurance Company Upgraded to A' (A Prime), Unsurpassed, by Demotech, Inc.

COLUMBUS, Ohio, July 13, 2011 /PRNewswire/ -- American Coastal Insurance Company has earned a Financial Stability Rating^® of A' (A Prime), Unsurpassed, from Demotech, Inc.  This level of FSR is assigned to insurers who possess unsurpassed 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.

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, including Fannie Mae, Freddie Mac and HUD.

About American Coastal Insurance Company

American Costal Insurance Company (ACIC) is a licensed and admitted Florida based insurance company currently writing Condominium and Homeowner Association properties, receiving its Certificate of Authority in 2007.  The initial capitalization of $50 million policyholder surplus has grown to over $112 million as of 03/31/2011.  There is no debt, LOC, preferred capital or other leverage used in the capitalization of ACIC.  ACIC maintains a conservative premium written to policyholder surplus ratio.  ACIC is managed by Amrisc, the leading wind MGA in the United States.  Visit www.amcoastal.com for more information.

About Demotech, Inc.

Demotech, Inc. is a financial analysis firm located in Columbus, Ohio.  Since 1985, Demotech has been serving the insurance industry by providing actuarial consulting and accurate and proven Financial Stability Ratings^® (FSRs) for Property & Casualty insurance companies and Title underwriters.  FSRs are a leading indicator of the financial stability of a company.  Our rating process provides an objective baseline and insight into the future solvency of a company.  As an independent financial analysis and actuarial firm, Demotech has a proven track record of predicting financial stability in the insurance industry.  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 Financial Stability Ratings^® (FSRs) to insurers of all sizes.

Visit www.demotech.com for more information.

SOURCE Demotech, Inc.