Demotech, Inc. Request for Comment: Update to Financial Stability Rating® Methodology Regarding Protected Cell Captives (PCCs)

Demotech, Inc. Request for Comment: Update to Financial Stability Rating® Methodology Regarding Protected Cell Captives (PCCs)

Columbus, Ohio, January 14, 2025: Demotech, Inc. is requesting comment on our proposed update to our Financial Stability Rating^® Methodology related to reviewing and rating Protected Cell Captives (PCCs) and similar entities. The proposed update is intended to better address some of the unique attributes of PCCs or segregated cell facilities and provide additional details regarding Demotech's review of these entities. The update will be incorporated into the currently applicable Financial Stability Rating^® Methodology. Demotech has determined that it would be useful to receive feedback on its proposed update from market participants and interested parties.

Demotech does not expect any currently assigned ratings to change as a result of this update to its methodology.

The request for comment period will remain open until February 14, 2025.

The proposed update is available at the Regulatory page of Demotech's website: https://www.demotech.com/regulatory/ or by following this link: Request_for_Comment_FSR_Methodology_Update_PCC_20250114.pdf

Instructions for submitting comments:

Comments may be submitted via the Regulatory Comment Submission form on Demotech's website: https://www.demotech.com/regulatory/ or directed via email to [email protected].

Comments must be received on or before February 14, 2025.

Demotech will publish comments received in response to this request for comment unless the submitting party requests confidentiality. If you would like your comment to remain confidential and not be published, you must clearly indicate this preference with your submission. If you would like your comment to be published but your identifying information to remain anonymous, you must clearly indicate this preference with your submission.

Questions may be directed to [email protected].

About Demotech, Inc.

Established in 1985, Demotech, Inc. is a financial analysis firm located in Columbus, Ohio. Demotech has served the insurance industry by providing objective and independent Financial Stability Ratings® (FSRs) for Property & Casualty insurance companies, Life & Health insurance companies, and Title underwriters, among others. As the first company to have its rating process formally reviewed and accepted by Fannie Mae, Freddie Mac, and HUD, Demotech has been leveling the playing field by offering FSRs to insurers of all sizes. As of July 11, 2022, Demotech is registered with the U.S. Securities and Exchange Commission (SEC) as a nationally recognized statistical rating organization (NRSRO) in the class of ratings for insurance companies. Visit www.demotech.com for additional information.