Demotech Affirms the Financial Stability Ratings® of Lighthouse Property Insurance Corporation and Lighthouse Excalibur Insurance Company


Columbus, Ohio, September 14, 2021: The Financial Stability Ratings® (FSR) of A, Exceptional, assigned to Lighthouse Property Insurance Corporation and Lighthouse Excalibur Insurance Company have 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, sufficient liquidity of invested assets, an acceptable level of financial leverage, reasonable loss and loss adjustment expense reserves (L&LAE) and realistic pricing, to name some critical metrics.

Demotech founder and President, Joe Petrelli, noted that “Additional information was considered to supplement the Q2 2021 financial statements and operating results.  We obtained information, through conversations and meetings with executive management, that was not available at the time of the most recent statutory financial statements. Given our current understanding of the revisions in corporate business model, in anticipation of the favorable impact of the efforts on the Company’s operating plan and future operating results, in conjunction with the Company’s immediate access to sufficient capital to honor or defend meritorious claims as they come due, including the recent catastrophe losses and loss adjustment expenses,  we issue this affirmation of the Financial Stability Rating® based upon the totality of our review of the June 30, 2021 operating results and actions of management. Any future affirmations will require demonstrable evidence of the impact of the revisions on the company’s financial stability.”

Sharon Romano Petrelli, CPCU, AIAF, CCP, ARC, co-founder of Demotech, noted “Demotech rated insurers have addressed the needs of claimants despite the frequency of natural disasters.  Thus far, insurers meeting or exceeding Demotech’s horizontal reinsurance requirements have adequately addressed the onslaught of events in a single storm season.”

Patrick White, representing Lighthouse, added: “The past two years have broken numerous industry records for severe weather and hurricane season activity in our five states. With additions of capital, significant rate action and broad exposure management, along with the continued support from Demotech’s comprehensive rating methodology, Lighthouse has been able to respond to all of our policyholders after these major events and will continue to now after Uri, Ida and Nicholas so far in 2021.”

Petrelli added, “Put in place in 2002, our rigorous horizontal catastrophe reinsurance requirements have protected millions of property owners, insurers and the stakeholders of those insurers on a countrywide basis.  Although this type of catastrophe reinsurance protection is expensive, aggressive horizontal programs are necessary.  Capital infusions can be used to back fill losses related to multiple carrier retentions in a single season.”

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.  Demotech was the first to review and rate independent regional and specialty insurers. Demotech’s consistently increasing list of accreditations and acceptances has resulted in rating and reviewing more than 400 insurers operating in the US.  Visit www.demotech.com for additional information.

About Lighthouse Property Insurance Corporation

Established in 2008, Lighthouse Property Insurance Corporation (Lighthouse) is an admitted property and casualty insurance company authorized to write in Florida, Louisiana, North Carolina, South Carolina, and Texas. In 2019, Lighthouse acquired Excalibur National Insurance Company and relaunched it as Lighthouse Excalibur Insurance Company, a wholly-owned subsidiary of Lighthouse. As of June 2020, Lighthouse acquired Prepared Insurance Company, allowing the company to enter the state of Florida and expand its geographic footprint further. Lighthouse sells and distributes its policies through an exclusive network of licensed, independent professional agencies. They have been assigned a Financial Stability Rating of A, Exceptional, from Demotech, Inc.

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