But earlier this month, scores firm Demotech confirmed in a launch that Southern Fidelity was unable to secure reinsurance protection for the upcoming hurricane season, and subsequently withdrew its Monetary Stability Ranking for the insurance company.
“After completing our review of very first quarter 2022 money statements and thinking about that the Company’s reinsurance coverage for the 2022 hurricane period is not entire as of June 2, 2022, Demotech has withdrawn the Fiscal Balance Score beforehand assigned to Southern Fidelity Coverage Company,” Demotech explained in its launch.
Things continue to search grim for Southern Fidelity, as the Florida Business of Insurance policies Regulation (OIR) just lately issued an order which said that the insurer had entered negotiations to transfer some or all its policies to one more insurance provider as aspect of a “winding-down” approach. Artemis.bm described that Southern Fidelity has about 78,000 policies in pressure in Florida, as perfectly as one more 69,000 throughout Louisiana, South Carolina and Mississippi.
The OIR claimed that it identified Southern Fidelity in “hazardous financial ailment,” and had purchased the insurance company to current a remediation approach this week.
Examine additional: A few Florida insurers accepted to drop over 50,000 homeowners’ insurance policies
This is not the to start with time Southern Fidelity was purchased to offload its policies. In May perhaps 2021, the insurance provider – together with Gulfstream Home and Casualty as very well as Universal Coverage Corporation of North The usa – was ordered by the OIR to terminate far more than 50,000 home insurance coverage policies in the confront of Florida’s troubled insurance plan market place. For its section, Southern Fidelity was authorized to cancel 19,600 residential procedures.