Demotech Affirms the Financial Stability Rating® Assigned to Southern Fidelity Insurance Company

Columbus, Ohio, September 4, 2019: The Financial Stability Rating® (FSR) of A, Exceptional, assigned to Southern Fidelity Insurance Company has been affirmed by Demotech, Inc.  This level of FSR is assigned to insurers who possess exceptional financial stability related to maintaining positive surplus as regards policyholders, liquidity of invested assets, an acceptable level of financial leverage, reasonable loss and loss adjustment expense reserves (L&LAE) and realistic pricing.

FSRs summarize Demotech’s opinion of the financial stability of an insurer regardless of general economic conditions or the phase of the underwriting cycle.  FSRs utilize statutory financial data based on insurance accounting principles prescribed or permitted by the National Association of Insurance Commissioners (NAIC).  Since 1989, FSRs of A or better have been accepted by the major participants in the secondary mortgage marketplace.

About Southern Fidelity Insurance Company

Southern Fidelity Insurance Company (SFIC) commenced operations in 2005 with a depopulation of policies from the Florida Citizens Property Insurance Corporation.  SFIC then entered the Florida voluntary market for homeowners and dwelling fire policies to supplement certain target areas and balance exposures.  In 2006, SFIC took advantage of the Florida Insurance Capital Build-Up Program and obtained $25M from the State of Florida and $25M from private sources.  During 2007, SFIC re-wrote a large book of business from a company which had been placed into rehabilitation by the Florida Office of Insurance Regulation.  In 2008, SFIC began writing business in Louisiana through an assumption of an optimized portfolio from Louisiana Citizens Property Insurance Corporation after taking advantage of the Insure Louisiana Program.  SFIC has recently offered products in South Carolina.  Visit for more information.

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 for more information.

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