Demotech Upgrades the Financial Stability Rating® Assigned to Colonial Lloyds Insurance Company


Columbus, Ohio, May 12, 2017: The Financial Stability Rating® (FSR) assigned to Colonial Lloyds Insurance Company has been upgraded to A, Exceptional, 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 Colonial Lloyds Insurance Company

Colonial Lloyds was organized in 1981.  The Company is a specialty underwriter of low to moderate valued residential properties writing personal lines Homeowners, Fire & Allied, and Liability coverage throughout the state of Texas through independent general agents.  The Company is also licensed to write Homeowners coverage in Louisiana.

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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