The stability of Florida’s property insurance coverage market continues to return into query, as two insurers working within the state had their rankings withdrawn, whereas a 3rd noticed a downgrade.
Earlier this week, Demotech introduced it has withdrawn the financial-stability rankings for Weston Property & Casualty Insurance Company and FedNat Insurance Company. The rankings company additionally revealed that it downgraded United Property & Casualty Insurance Company’s ranking from “A” (Exceptional) to “M” (Moderate).
Ratings withdrawals have usually preceded an organization’s insolvency or rehabilitation. But whereas United Property & Casualty’s downgrade could seem like the lesser penalty, mortgage suppliers comparable to Fannie Mae and Freddie Mac don’t settle for homebuyers with low-rated insurers.
Both FedNat and United Property & Casualty had beforehand reported monetary points, stated CBS Miami.
In May, FedNat had reached an settlement with Florida’s Office of Insurance Regulation (OIR), which ordered the insurer to cancel insurance policies and switch some to a different affiliated insurer, Monarch National Insurance. Meanwhile, United Property & Casualty revealed final month that its board had begun a “evaluation of its strategic and capital elevating options,” with one of many ideas being a sale of its property.
CBS Miami reported that Demotech has not confirmed whether or not the three insurers are among the many 17 insurers it initially deliberate to downgrade final month, nor has the rankings company recognized all 17 of the insurers concerned. The deliberate downgrade was placed on maintain final week “attributable to varied circumstances,” stated Demotech president Joe Petrelli.
Read extra: Ratings downgrade of 17 insurers granted keep of execution – for now
But even because the downgrade was delayed, Petrelli provided a reminder that the up to date rankings might nonetheless be launched.