TAMPA BAY, Fla. — In the first week of August, four Florida property insurance companies had their ratings withdrawn on the rating agency Demotech’s database and one of those is now in liquidation.
Weston Property & Casualty Insurance is the fifth property insurance company operating in Florida to go into receivership this year.
According to the Florida Chief Financial Officer’s (CFO) websiteWeston entered liquidation on August 8. This leaves its 20,000 customers just 30 days to find new insurance and all existing claims will be transferred to the Florida Insurance Guarantee Association.
The CFO website states, “On August 8, 2022, Weston Property & Casualty Insurance Company was ordered into receivership for purposes of liquidation by the Second Judicial Circuit Court in Leon County, Florida. The Florida Department of Financial Services is the court-appointed Receiver of Weston Property & Casualty Insurance Company.”
Weston and FedNat insurance were the first companies to lose their financial stability ratings from Demotech after reviewing reinsurance packets for the 2022 hurricane season.
Documents show that FedNat has transferred 78,000 policies to its subsidiary, Monarch National Insurance Company, and dropped all remaining policies.
According to our records, FedNat had about 152,000 policies before they filed for rehabilitation in receivership in May. They dropped 68,000 homeowners and continued operating.
Bankers Specialty and Community First are the other two companies that now have an NR or “no rating” from Demotech. Their parent company, Bankers Insurance Group, tells us that they voluntarily withdrew their rating.
In a statement, they said, “We proactively withdrew our ratings from Demotech over lingering concerns about the company’s methodologies. AM Best is the largest global rating agency for the insurance industry. Bankers Insurance Group holds an AM Best Financial Strength Rating (FSR) that exceeds the requirement for mortgage lenders Fannie Mae and Freddie Mac.”