- Financial Stability Rating® Notifications
- Demotech Affirms the Financial Stability Rating® Assigned to Southern Fidelity Insurance Company
Demotech Affirms the Financial Stability Rating® Assigned to Southern Fidelity Insurance Company
Columbus, Ohio, November 13, 2020: Demotech, Inc. affirms the Financial Stability Rating® (FSR) of A, Exceptional, to Southern Fidelity Insurance Company. This affirmation is based upon Hudson Structured Capital Management Ltd., doing its re/insurance business as HSCM Bermuda (“HSCM Bermuda”), intention to take ownership of Southern Fidelity Insurance Company (“SFIC”) and its affiliated entities on or about November 12, 2020.
“Having reviewed and accepted Southern Fidelity’s vertical and horizontal catastrophe reinsurance program prior to the 2020 – 2021 storm season, Demotech knew that the Company could survive even the unprecedented number of storms that struck its Louisiana portfolio in 2020. However, as the dollar amount of capital necessary to replenish surplus increased, we knew management would turn to knowledgeable professionals for funding,” said Joseph Petrelli, President, Demotech.
In exchange for ownership, HSCM Bermuda has agreed to provide a capital injection and take an active role in maintaining and expanding SFIC’s footprint in the Florida, Louisiana, Mississippi and South Carolina homeowners’ insurance markets. “2020 has been a challenging year for the Southeast homeowners’ insurers,” said Edouard von Herberstein, Partner and Chief Underwriting Officer – HSCM Bermuda. “As rates and the underwriting environment begin to improve, we are excited to support Southern Fidelity as they rebuild.”
“Southern Fidelity Insurance Company is proud of its intended partnership with HSCM Bermuda. This alliance will strengthen our ability to serve our agents and policyholders. We also appreciate Demotech’s willingness to work with us while we addressed a record year for catastrophes in Louisiana, assisted our claimants and worked with HSCM Bermuda,” said James Graganella, Chief Executive Officer of SFIC.
About Hudson Structured Capital Management Ltd.
HSCM Bermuda is an asset manager focused on investments in the Re/Insurance and Transportation sectors. HSCM was launched in 2016 and, as of November 1, 2020, had more than $2.75 billion in capital commitments and assets under management. HSCM focuses on core economic sectors that are likely to outgrow global GDP, offer low correlations with broader markets, and are experiencing a shift from balance sheet and to market financing.
Additional information about Hudson Structured Capital Management Ltd. can be found at www.hscm.com.
About Southern Fidelity Insurance Company
Southern Fidelity Insurance Company has provided independent agents throughout Florida, South Carolina, Louisiana and Mississippi a line of competitive products and services in order to meet the needs of their customers since 2005. For over 15 years, Southern Fidelity Insurance Company has incorporated our mission statement of offering superior service, competitive coverages, expedited claim service, and peace of mind for our policyholders.
In addition to forming lasting relationships with our agents, Southern Fidelity strives to provide each policyholder with peace of mind and financial security in knowing that their home or investment property is well-protected during a time of peril.
Additional information about SFIC can be found at www.southernfidelityins.com.
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. Demotech was the first to review and rate independent regional and specialty insurers. Demotech’s consistently increasing list of accreditations and acceptances has resulted in rating and reviewing more than 400 insurers operating in the US. Visit www.demotech.com for additional information.
# # #