Demotech Provides Input on Capitol Preferred Merger


Columbus, OH, March 26, 2019: Demotech, Inc. was pleased to provide its input and commentary to Capitol Preferred Insurance Company during the deliberation and execution phases of its merger with its affiliate, Southern Fidelity Property & Casualty, Inc. Based upon Demotech’s review of the business plan of the surviving entity, we believe that Capitol Preferred is positioned to leverage its intrinsic strengths while simultaneously benefiting from the economies of scale inherent in a single operation and the considerable executive talent on staff.

Concurrently, the larger organization should benefit from the depth of managerial talent. The team has the expertise and experience necessary to respond to the needs of regulators, consumers, producers, and reinsurers. Equally as important, the larger organization provides its employees with more and stronger career opportunities enhancing the likelihood of employee retention.

About Demotech, Inc.

Demotech, Inc. is a financial analysis firm specializing in evaluating the financial stability of regional and specialty insurers. Since 1985, Demotech has served the insurance industry by assigning accurate, reliable and proven Financial Stability Ratings® (FSRs) for Property & Casualty insurers and Title underwriters. FSRs are a leading indicator of financial stability, providing an objective baseline of the future solvency of an insurer. Demotech’s philosophy is to review and evaluate insurers based on their area of focus and execution of their business model rather than solely on financial size. Visit www.demotech.com for more information.