SOUTHFIELD, Mich., Jan. 27, 2017 /PRNewswire/ -- On December 2, 2016, Demotech, Inc. affirmed the Financial Stability Ratings® (FSRs) of A, Exceptional, earned by Meadowbrook Insurance Group, Inc.'s insurance subsidiaries. This level of FSR reflects the strong capital position of the insurance company subsidiaries and Demotech's view that regardless of the severity of a general economic downturn or deterioration in the insurance cycle, at least ninety-five percent of all insurers country-wide receiving FSRs of A are expected to have positive surplus as regards policyholders as of eighteen months from the initial date of rating assignment. For more information about Demotech, Inc. or FSRs visit www.demotech.com.
On January 26, 2017, A.M. Best affirmed the "B++ (Good)" Financial Strength Rating for the operating subsidiaries of Meadowbrook Insurance Group, Inc. with a Stable Outlook. The ratings reflect Meadowbrook's adequate capitalization and improved operating results since 2013. Since November 15, 2016, Meadowbrook's new executive team has taken aggressive steps to improve underwriting results and develop a sustainable long-term business plan.
In addition, the Department of the Treasury's listing of Certified Companies has three (3) Meadowbrook subsidiaries listed. Every year, the Treasury Department updates this list on July 1 after analyzing the current financial strength and operation of the company. As of the most recent analysis, the three (3) Meadowbrook companies had a combined total single bond limit capacity of over $48.7 million. This certification by the Treasury Department further underscores the financial strength of Meadowbrook and its subsidiaries.
Kenn R. Allen, Meadowbrook President and Chief Executive Officer, commented: "Our team has made significant enhancements to Meadowbrook's business model as we seek to be a global, innovative, architect of risk management solutions. These efforts, in combination with our balance sheet strength, position us well going into 2017 and beyond. The rating agencies have acknowledged the positive changes that have been initiated and we believe will respond favorably as our efforts take hold."
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SOURCE Meadowbrook Insurance Group, Inc.