Demotech, Inc., the originator of Financial Stability Ratings (FSR) for Property and Casualty insurers, announces the assignment of Financial Stability Ratings of A (Exceptional) to Encompass Floridian Insurance Company (EFIC) and Encompass Floridian Indemnity Company (EFI). The assignment of these Financial Stability Ratings was a critical component to the positioning and structuring of Encompass Insurance’s Florida business.

Financial Stability Rating of A (Exceptional) were based, in large part, upon the company’s disciplined business plan, which was to be implemented by an experienced management team, and an excellent reinsurance program designed to address the Florida property insurance marketplace.

Financial Stability Rating summarizes Demotech’s opinion as to the financial stability of an insurer regardless of general economic conditions or the phase of the underwriting cycle. Financial Stability Ratings are based upon statutory insurance accounting principles prescribed or permitted by the National Association of Insurance Commissioners (NAIC). For more than a decade, Financial Stability Ratings of A or better have been accepted by the major participants in the secondary mortgage marketplace, including the Fannie Mae, Freddie Mac and HUD.

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