It was in Might 2020 that the OIR ordered Weston to create a capital administration plan to enhance its liquidity and cut back the receivable quantities owed. The regulator additionally required the insurer to file month-to-month monetary statements.
Weston later started to drop clients in 2021 and merged its two corporations.
The affidavit additionally revealed that Weston’s web underwriting loss final yr was $58,378,023, and its web lack of earnings was $57,681,556 – each significantly larger than its mixed surplus of $28,294,519 final yr.
ABC Motion Information reached out to the Insurance coverage Info Institute, which revealed that Weston has about 20,000 insurance policies in Florida.
Weston is considered one of three financially troubled Florida insurers who have been hit with a rankings replace by Demotech earlier this week. The rankings company withdrew Weston’s “A” score, in addition to the score of FedNat Insurance coverage Firm. One other insurer, United Property & Casualty Insurance coverage Firm, noticed its score downgrade from “A” to “M”.
There is no such thing as a official phrase on whether or not FedNat may also be referred to receivership, however Demotech introduced that it has withdrawn the rankings of two extra insurers: Bankers Specialty Insurance coverage and First Group Insurance coverage – each insurance coverage companies underneath the Bankers Insurance coverage Group.
Demotech initially deliberate to downgrade the rankings of 17 insurers working in Florida abruptly final week however selected to delay the motion “because of varied circumstances.” The id of all 17 corporations has but to be disclosed.