Florida Property Insurers Largely Avoid Downgrades, For Now: Demotech

Ratings company Demotech is holding off on issuing large-scale ratings downgrades of Florida property insurers for now, after a number of insurers heeded its warning and boosted their claims reserves and policyholder surplus. The Insurance Journal article notes that the ratings firm said it is also monitoring three insurers — Prepared, Mount Beacon and Elements— that have been or are in the process of being sold as a result of the situation in Florida. Demotech said it worked individually with companies in Florida to analyze their financial standing, strengthen their claims reserves, and that resulted in $355 million in additional reserves and policyholder surplus among the Florida carriers it rates.