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- Demotech Affirms the Financial Stability Rating® Assigned to Conventus Inter-Insurance Exchange
Demotech Affirms the Financial Stability Rating® Assigned to Conventus Inter-Insurance Exchange
Columbus, Ohio, August 17, 2012: The Financial Stability Rating® (FSR) of A’ (A Prime), Unsurpassed, assigned to Conventus Inter-Insurance Exchange has been affirmed by Demotech, Inc. This level of FSR is assigned to insurers who possess unsurpassed 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 Conventus Inter-Insurance Exchange
Conventus Inter-Insurance Exchange distinguishes itself by Putting Physicians First™. Conventus is owned and governed exclusively by its NJ physician members; Governing Board members all currently practice medicine. Conventus returned funds to New Jersey physicians in 2010-2011, with 2012 returns under consideration. A not-for-profit insurer, Conventus’ financial strength and responsive service help it retain 98 percent of members annually. In addition, its 24/7/365 risk management hotline has saved millions in claims costs by helping doctors avoid litigation. Conventus was a pioneer in offering formal EHR evaluations that focus on risk exposures – and was the first U.S. PIAA carrier to offer PeriCALM Shoulder Screen for obstetricians. In-house claims department attorneys maintain case counts lower than competitors, allowing them to resolve member claims with the least negative impact. In 2012, the company celebrates its 10th anniversary and upholds its A’ financial rating. Its commitment to member owners consistently leads the way.
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. This philosophy was the catalyst for the Demotech Company Classification System, which was published in Insurance Journal, in order to stratify and categorize insurers into operational categories. Visit www.demotech.com for more information.