It was in May 2020 that the OIR ordered Weston to create a capital administration plan to enhance its liquidity and scale back the receivable quantities owed. The regulator additionally required the insurer to file month-to-month monetary statements.
Weston later started to drop clients in 2021 and merged its two corporations.
The affidavit additionally revealed that Weston’s web underwriting loss final 12 months was $58,378,023, and its web lack of earnings was $57,681,556 – each significantly greater than its mixed surplus of $28,294,519 final 12 months.
ABC Action News reached out to the Insurance Information Institute, which revealed that Weston has about 20,000 insurance policies in Florida.
Weston is one in every of three financially troubled Florida insurers who have been hit with a scores replace by Demotech earlier this week. The scores company withdrew Weston’s “A” score, in addition to the score of FedNat Insurance Company. Another insurer, United Property & Casualty Insurance Company, noticed its score downgrade from “A” to “M”.
There is not any official phrase on whether or not FedNat can even be referred to receivership, however Demotech introduced that it has withdrawn the scores of two extra insurers: Bankers Specialty Insurance and First Community Insurance – each insurance coverage companies underneath the Bankers Insurance Group.
Read extra: Ratings downgrade of 17 insurers granted keep of execution – for now
Demotech initially deliberate to downgrade the scores of 17 insurers working in Florida all of sudden final week however selected to delay the motion “because of varied circumstances.” The id of all 17 corporations has but to be disclosed.