Columbus, OH (ContentDesk) August 17, 2005 — Demotech, Inc. releases an extensive, 16-year analysis, entitled Serious About Solvency,’ of the survival rates of Financial Stability Ratings (FSRs) prepared between 1989 and 2004. This study demonstrates the favorable survival rates associated with stable FSRs.

FSRs prepared over the period 1989 through 2004, Demotech observes that P&C insurance companies earning an FSR of A or better have long-term survival rates that compare favorably to the impairment rates of other rating alternatives. Furthermore, given Demotech’s affinity for reviewing regional insurance companies, specialty insurance companies and relatively new insurance companies, its methodology effectively discerns between those that will be financially stable and those that will not.

Koestler, Chief Ratings Officer of Demotech, states, “the analysis confirms the impressive track record of Financial Stability Ratings and enables users of FSRs to reach a comfort level regarding the historical survival rates of companies with stable FSRs.” Accordingly, insurance carriers providing stand-alone umbrella coverage, reinsurance or insurance agents’ errors and omissions coverage can identify financially stable regional insurance companies and be confident in the long-term survival rates of insurance companies earning a Financial Stability Rating of A or better.

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