Demotech Withdraws HomeWise Preferred Insurance Company Rating
Feb 20, 2010
The Demotech, Inc. rating of HomeWise Preferred Insurance Company was withdrawn yesterday after it filed a notice of intent to discontinue writing one or more lines of insurance and related notice of anticipated nonrenewals with the Florida Office of Insurance Regulation.
Demotech’s rating for HomeWise Insurance Company remains in place, however.
A February 19, 2010 Demotech press release on the matter is reprinted below.
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Financial Stability Rating® of HomeWise Preferred Insurance Company Withdrawn
Demotech, Inc. February 19, 2010
Effective immediately, the Financial Stability Rating® (FSR) of A, Exceptional, assigned to HomeWise Preferred Insurance Company (HPIC) is withdrawn. On February 19, 2010, HPIC filed a notice of intent to discontinue writing one or more lines of insurance pursuant to Section 624.430 and related notice of anticipated nonrenewals pursuant to Section 624.4305 with the appropriate authorities at the State of Florida Office of Insurance Regulation. Accordingly, the withdrawal of HPIC’s FSR should not impact its future operations.
The FSR of A currently assigned to HomeWise Insurance Company (HWIC) remains in place while management completes its efforts to raise funds to bolster the surplus of the Company in order to enhance the protection available to its policyholders while simultaneously revising its business model.
Joseph L. Petrelli, Demotech Inc.’s President, indicated that “the FSR assigned to HWIC shall remain in place while we familiarize ourselves with the details underlying management’s capital infusion and the revised business plan. We would expect to complete the discussions and negotiations with management in the very near future. Given the assertions made to date, the criteria required for a Financial Stability Rating® of A, Exceptional, are expected to be met based upon the results that will be presented in HWIC’s year-end 2009 financial statement.”
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