Demotech Affirms the Financial Stability Rating® Assigned to Lutheran Mutual Fire Insurance Company


Columbus, Ohio, January 11, 2018: The Financial Stability Rating® (FSR) of A” (A Double-Prime), Unsurpassed, assigned to Lutheran Mutual Fire Insurance Company 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 Lutheran Mutual Fire Insurance Company

Lutheran Mutual Fire Insurance Company was formed in 1873 by a group of German Lutherans in response to the devastation caused by the Great Chicago Fire.  The company was formally licensed by the State of Illinois in 1929.  Lutheran Mutual is currently located in Wheaton, Illinois and provides homeowners insurance with competitive rates throughout the northern Illinois area.  The company maintains a high surplus to written premium ratio through conservative investment policies and careful underwriting.

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.

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