Federated National Insurance Company Assigned a First-Time AM Best Rating of 'B+' (Very Good), and Demotech Inc. Reaffirms Rating of 'A'.
According to AM Best, "This rating reflects the company's improved operating results, reduced underwriting leverage and favorable cash flows. Federated National specializes in writing nonstandard minimum limits private passenger, commercial automobile and mobile home coverages solely in the state of Florida. The company operates as part of an integrated insurance group that provides distribution, premium financing, underwriting and claims handling functions through various affiliates. The efficiencies derived from this structure, combined with considerable ceding commission under its substantial reinsurance programs, have allowed the company to improve its expense ratio to a very competitive level. During 1998, the company's parent, 21st Century Holding Company, completed an initial public offering of its stock. As a public entity, the group has greater access to capital to support its rapid growth."
An "A" rating from Demotech Inc. signifies that regardless of the severity of a general economic downturn or a deterioration in the insurance cycle, insurers earning a financial stability rating of "A" possess exceptional financial stability related to maintaining positive surplus as regards policyholders.
Ron Raymond, President of Federated National Insurance Company said, "An initial rating of B+ from AM Best is very positive for our company. This rating, which is in Best's 'secure' range, demonstrates our continued growth, profitability and financial strength."
21st Century Holding Company manages its insurance underwriting, distribution and claims process through its subsidiaries. The Company underwrites standard and non-standard personal automobile insurance and mobile home, property and casualty insurance in the state of Florida through its subsidiary, Federated National Insurance Company. The Company also has underwriting authority for third-party insurance companies, which it represents through a wholly owned managing general agent, Assurance Managing General Agents, Inc. Claims made by Federated National's insured are internally processed by 21st Century Holding Company through a wholly owned claims adjusting company, Superior Adjusting, Inc. 21st Century Holding Company also offers premium financing to its own and third party insured through a wholly owned subsidiary, Federated Premium Finance, Inc.. In addition, the Company offers other ancillary services including electronic income tax filing through Federated Agency, Inc., also a wholly owned subsidiary.
Certain matters described in this report are forward-looking statements an are subject to risk and uncertainties that could cause actual results to differ materially from those projected.
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|Date:||Aug 9, 1999|
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