COLUMBUS, Ohio, June 23, 2020 /PRNewswire/ -- Demotech, Inc. has assigned Financial Stability Ratings® (FSRs) of A, Exceptional, to Weston Insurance Company and Anchor Specialty Insurance Company. FSRs summarize Demotech's opinion of the financial stability of an insurer regardless of general economic conditions or the phase of the underwriting cycle. Since 1989, FSRs of A or better have been accepted by the major participants in the secondary mortgage marketplace.
Weston Insurance Holdings Corporation (WIHC) recently announced a change in control. WIHC is the parent of insurance carriers Weston Insurance Company and the recently acquired Anchor Specialty Insurance Company. Long-term WIHC investors, Hudson Structured Capital Management Ltd. and its affiliates (doing their re/insurance business as HSCM Bermuda) are expected to assume majority control, after working closely and cooperatively with management and current ownership, as a result of a significant capital restructuring plan, which will significantly reduce WIHC's group leverage and improve group balance sheet strength. WIHC also worked closely with rating agency Demotech, Inc. to shape the proposed capital restructuring to assuage any concerns regarding increased levels of holding company leverage used to finance the recent acquisition and recapitalization of Anchor Specialty by WIHC. Other group subsidiaries that are also likely to benefit from the plan include managing general agency Weston Insurance Management LLC.
According to Joseph Petrelli, President and Co-founder, Demotech, Inc., "Michael Millette and HSCM Bermuda's clients assuming majority control of the holding company to provide oversight and guidance to WIHC's insurance company subsidiaries is a game changer. The operating subsidiaries were sound and now the holding company is catching up."
About Weston Insurance Holdings Corporation
Weston Insurance Holding Corporation (WIHC) is a Florida corporation providing underwriting, administrative, and other services. It owns Weston Insurance Management, LLC, as well as insurance companies. Visit www.weston-ins.com for additional information.
About Hudson Structured Capital Management Ltd.
Hudson Structured Capital Management Ltd. (doing its re/insurance business as HSCM Bermuda) is an asset manager focused on alternative investments targeting mezzanine level returns. It focuses on the Re/Insurance and Transportation sectors. Visit https://hudsonstructured.com for additional information.
About Demotech, Inc.
Demotech, Inc. is a financial analysis firm specializing in evaluating the financial stability of regional and specialty insurers. Since 1985, Demotech has served the insurance industry by assigning accurate, reliable and proven Financial Stability Ratings® (FSRs) for Property & Casualty insurers and Title underwriters. FSRs are a leading indicator of financial stability, providing an objective baseline of the future solvency of an insurer. Demotech's philosophy is to review and evaluate insurers based on their area of focus and execution of their business model rather than solely on financial size. Visit www.demotech.com for more information.
SOURCE Demotech, Inc.
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