Demotech Assigns Financial Stability Rating® to National Fire & Indemnity Exchange


Columbus, Ohio, April 8, 2021: National Fire & Indemnity Exchange 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 (NAIC).  Since 1989, FSRs of A or better have been accepted by the major participants in the secondary mortgage marketplace.

About National Fire & Indemnity Exchange

National Fire and Indemnity Exchange (NIE) was formed in 1915 by the National Association of Dyers and Cleaners when they were unable to find anyone who would insure their members. It continues to insure numerous dry cleaners and laundromats in 32 states. NIE provides Commercial Multi-Peril policies including coverage for property, liability, business income, equipment breakdown, and bailee.

NIE is the only insurance program endorsed by the Drycleaning and Laundry Institute, the premiere international fabricare association. The Southwest Drycleaners Association and the South East Fabricare Association also endorse NIE.

NIE maintains balance sheet ratios that are stronger than most giant insurance companies. It also maintains reinsurance programs that participate in large losses and catastrophes.

NIE policyholders are also known as subscribers. They appoint an attorney-in-fact to manage the Exchange and they elect an Advisory Committee of subscribers to help govern the Exchange. All NIE policies are non-assessable.

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.

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