For the second year in a row, Retailers Mutual Insurance Company has earned a Financial Stability Rating (FSR) of A, or Exceptional, from Demotech, Inc., a Columbus, Ohio-based financial analysis and actuarial services firm.
 
An A rating is assigned to insurers who possess “an exceptional ability to maintain liquidity of invested assets, quality reinsurance, acceptable financial leverage and realistic pricing while simultaneously establishing loss and loss adjustment expense reserves at reasonable levels,” according to Demotech.
 
Demotech reevaluates each company annually to reflect the most current status of the firm’s financial stability. Retailers Mutual was first rated in 2007, when it earned its A (Exceptional) rating, and was reevaluated this past spring.
 
“Demotech provides an important independent evaluation of Retailers Mutual’s finances and operations,” said James P. Hallan, Retailers Mutual president and CEO. “As with an annual physical, we are reassured, though not surprised, to have this independent confirmation of Retailers Mutual’s excellent health.”
 
Demotech serves the insurance industry, providing pricing analysis, state filings assistance, Financial Stability Ratings and support for other required regulatory reporting.
 
A Financial Stability Rating summarizes Demotech’s opinion “of the insurer’s ability to insulate itself from the business cycle that exists in the general economy as well as the underwriting cycle that exists in the industry,” according to Demotech.