Demotech Assigns Financial Stability Rating® to Star Insurance Company

Columbus, Ohio, February 3, 2017: Star Insurance Company has earned a Financial Stability Rating® (FSR) of A, Exceptional, from 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.

Since 1989, FSRs of A or better have been accepted by the major participants in the secondary mortgage marketplace.  Acceptances and accreditations have expanded well beyond the initial Fannie Mae and Freddie Mac Single Family acceptances and now include Fannie Mae Multifamily acceptance of FSRs of A or better as regards captive insurers and risk retention groups and acceptances from the United States Department of Housing and Urban Development.  In the private sector, FSRs have gained widespread acceptance from numerous premium finance companies, informed insurance agent’s errors and omissions insurers, umbrella insurance markets, reinsurers, and other third parties.

About Star Insurance Company

Star Insurance Company is Meadowbrook’s primary insurance carrier subsidiary.  Formed in 1985, Star is a Michigan-domiciled carrier that is licensed and admitted in all 50 states, including the District of Columbia.  Operating as both a program and product insurance company, Star specializes in group property and casualty lines, providing insurance products for trade associations, public entities, affinity groups, individual businesses and professionals.

Star’s programs utilize conservative underwriting standards, realistic pricing, responsive claims handling and focused risk management services.  Star also serves captive insurance companies and other alternative risk funding vehicles by providing policy-issuing (“fronting”) services, reinsurance support and captive management services.

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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