We have great news from Centauri Insurance! Maintaining financial strength and long-term stability is essential in today’s evolving insurance market. Independent rating organizations play a critical role in evaluating insurers’ ability to meet policyholder obligations and remain resilient through changing market conditions. Recently, Demotech, Inc. completed its review of Centauri Insurance, reaffirming the company’s strong financial position and commitment to dependable performance.
Strong Financial Position and Rating Overview
Demotech, Inc. has affirmed the Financial Stability Ratings® (FSRs) of A, Exceptional for Centauri Specialty Insurance Company and Centauri National Insurance Company. Overall, this rating reflects Demotech’s opinion that these insurers demonstrate exceptional financial stability.
Demotech assigns an A, Exceptional rating to insurers that maintain strong policyholder surplus, solid liquidity of invested assets, acceptable financial leverage, reasonable loss and loss adjustment expense (L&LAE) reserves, and realistic pricing strategies.
Impact of the Applied Underwriters Acquisition
Demotech highlighted Centauri Insurance’s acquisition by Applied Underwriters as a key factor in strengthening its financial position. The acquisition replenished Centauri’s balance sheets and increased its capacity to manage the effects of past natural disasters.
As a result, Centauri can better address potential reserve development issues and sustain its business model. Demotech also noted that the acquisition brings added managerial expertise to support long-term profitability and operational stability.
Demotech’s Outlook on Operating Performance
Demotech stated that Centauri has reduced the impact of weaker operating results reported at year-end 2020. The company now stands positioned to report significantly improved operating results.
According to Demotech, Centauri is expected to meet or exceed the financial benchmarks required for insurers with an A, Exceptional rating. The company also continues to progress successfully through Demotech’s annual review process.
What Demotech Financial Stability Ratings Mean
Financial Stability Ratings summarize Demotech’s independent opinion of an insurer’s financial strength, regardless of economic conditions or underwriting cycles. Demotech bases these ratings on statutory financial data and insurance accounting principles set by the National Association of Insurance Commissioners (NAIC).
Since 1989, major participants in the secondary mortgage marketplace have accepted Demotech ratings of A or better.
Commitment From Centauri
Centauri Insurance remains committed to maintaining strong financial stability and dependable performance. These ratings reinforce Centauri’s ability to meet policyholder obligations and support long-term partnerships.
If you have any questions about the news from Centauri Insurance, contact us today! Thank you for your continued partnership and business.
Centauri Insurance
March 22, 2021