What does Demotech do?

Asked by: Allen Sawayn I  |  Last update: January 7, 2026
Score: 5/5 (39 votes)

Demotech provides Financial Stability Ratings® (FSRs) to Property & Casualty insurers, Life & Health insurers, Title underwriters, and other insurance companies. Insurance companies interested in obtaining a Preliminary Financial Stability Rating® may contact Demotech and engage in our rating and review process.

Is Demotech as good as AM Best?

The A (Exceptional) rating from Demotech is equivalent to an AM Best C++ rating.

What does a Demotech rating mean?

Demotech uses the registered term Financial Stability Rating® (FSR) to judge an insurer's ability to perform in the general economy and the "underwriting cycle that exists in the insurance industry". The company has eight levels of stability.

Is Demotech legit?

As of July 11, 2022, Demotech, Inc. is registered with the U.S. Securities and Exchange Commission as a nationally recognized statistical rating organization (NRSRO) in the class of ratings for insurance companies. Learn more at www.demotech.com.

What is the Demotech difference?

The Demotech Difference is a quarterly magazine that facilitates meaningful communication and discussion. Each issue features unique perspectives from subject matter experts on emerging concepts, tools, and techniques, ultimately to encourage learning and the evolution of our industry.

What Is Demotech And Downgrading?

15 related questions found

What rating is Cajun underwriters demotech?

Is Cajun Underwriters Reciprocal Exchange rated? Yes, On July 12, 2022, Demotech affirmed the company with a rating of “A Exceptional.”

How long has Demotech been around?

Established in 1985, Demotech, Inc. is a financial analysis firm located in Columbus, Ohio.

What is the rating of Demotech true insurance?

Demotech, Inc., a rating agency and financial analysis firm, recently bestowed a Financial Stability Rating of 'A', Exceptional, to Trusted Resource Underwriters Exchange (TRUE), a reciprocal insurer established by American Family.

Did Frontline insurance get downgraded?

Frontline has Demotech downgrade reversed as agency affirms A FSR. Lake Mary, Florida-based Frontline Insurance has maintained its A, exceptional financial stability rating (FSR) from rating agency Demotech despite the company being notified last month it was due to be downgraded to S, substantial.

What rating is Aegis Demotech?

Admitted with a Financial Stability Rating of “A” (Exceptional) from Demotech.

What are the four main insurance rating companies?

The four major insurance company rating agencies in the U.S. are A.M. Best, Moody's, Standard & Poor's, and Fitch.
  • Understanding Insurance Company Credit Ratings.
  • Special Considerations.
  • Benefits of Insurance Company Credit Ratings.

Who owns Shore One insurance?

Nick Steffey

In 2006, he founded Narragansett Bay Insurance Company (NBIC) to solve the insurance gap for over 200,000 Northeastern coastal home owners. Still, more than anything, he loves helping coastal homeowners feel safe and protected.

What is a Demotech insurance company?

Demotech is an insurance rating agency based in Columbus, Ohio. They primarily specialize in homeowners insurance and have been in the business since 1985. They're also known for rating smaller insurance agencies, which separates them from other insurance rating agencies like A.M. Best.

What is USAA AM rating?

‍ ‍ 3 USAA Life Insurance Company's ratings are: A.M. Best: A++ (Superior, highest of 16 possible ratings). Moody's Investors Service: Aa1 (Excellent, second highest rating of 21 possible ratings).

What rating is foremost insurance group Demotech?

They have a Financial Stability Rating of “A or Exceptional” from Demotech Inc.

What is a good insurance rating?

Ratings/Financials of the Insurer

Although it is preferable to have an A-rated company, there are many situations where B-rated companies can perform even better. The reason for a B++ or B+ rating (A.M. Best defined as “good”) or below is often simply the company's size or the newness in the marketplace.

What is the rating of Neptune Demotech?

Neptune Flood has an A.M. Best Credit Rating of “A or Excellent”, a Credit Rating scoring opinion of an insurer's financial strength and ability to meet their ongoing insurance policy and contractual obligations. They do not have a Financial Stability Rating from Demotech Inc. for their long-term stability.

Is DemoTech reliable?

For example, Insurance Journal points out that “DemoTech's 'A' financial stability ratings have long been considered to be roughly equivalent to AM Best's 'B'-level ratings.” This is concerning for those who prioritize financial strength and long-term stability as DemoTech's criteria does not align with the stricter ...

What is SageSure's financial rating?

SageSure Signature

Occidental Fire and Casualty Company of North Carolina (AM Best Financial Strength Rating of A-, Excellent)

How long has Allianz Life been in business?

Facts about Allianz Life

We've been helping Americans prepare for their financial futures since 1896.

What is State Farm's insurance rating?

State Farm earned 5 stars out of 5 for overall performance. NerdWallet's ratings are determined by our editorial team. The scoring formula takes into account consumer experience, complaint data from the National Association of Insurance Commissioners and financial strength ratings.

Is Progressive insurance rated by AM Best?

We have received some of the highest financial ratings and honors from A.M Best and other leading organizations, which means that we have a superior ability to honor our insurance commitments and pay claims for our customers.