COLUMBUS, Ohio, July 28, 2016 /PRNewswire/ -- According to Joseph Petrelli, President, Demotech, Inc., "While Sawgrass Mutual Insurance Company's reported financial position continues to reflect acceptable liquidity, realistic loss and loss adjustment expense reserves, limited financial leverage, and the purchase of a rigorous catastrophe reinsurance program for the 2016 hurricane season, the Company has been unable to resolve outstanding business issues associated with Cladium, Inc., a managing general agency, and Endurance Specialty Holdings, Ltd. This has resulted in litigation. In turn, litigation results in an unproductive deployment of managerial time in addition to the expense of litigation."
"We continue to communicate with the management of the Company and will monitor and subsequently reflect our observations in the Financial Stability Rating®. Although these types of situations are fluid, once litigation is in play, there are periods of intense activity followed by lulls in the action," says Bob Warren, CPCU, CPA, Client Services Manager, Demotech, Inc.
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.
About Sawgrass Mutual Insurance Company
Sawgrass Mutual Insurance Company was incorporated on May 25, 2007, and is a mutual insurer domiciled in the state of Florida. The Company provides homeowners Property & Casualty coverage through independent agents in the state of Florida. It has been reviewed, rated, and monitored quarterly by Demotech, Inc. since inception.