Demotech is a company that provides accurate ratings of financial statuses of insurance companies. They are used to keep track of any changes a company undergoes financially and how that may affect them and the insurance industry as a whole. They keep records of their analyses for future reference.
Financial Stability Ratings®
FSRs were created by Demotech to create a precise and proficient analysis of a company’s finances. This may be used to see how a company may do under financial strain or during a state of economic decline. The ratings determine how well a company may be able to pay back debts based on their assets (outside of any liabilities they may incur).
Future Financial Security
Demotech focuses on long-term viability when considering the success in a company’s ratings. They go beyond base profit to see how other finances in the company, such as liability, are balanced out. This helps them create the final rating for the company. Each company’s rating can change from year to year depending on the new rating and analysis, and they may get downgraded or upgraded according to it. This can affect how consumers see a company and help them decide who to go with. In the end, the goal is to create as much success and corporate growth as possible for companies.