Rating Information
Texas Builders Insurance Company has earned a Financial Stability Rating® (FSR) of A′ (A Prime), Unsurpassed, from Demotech, Inc.
This level of FSR is assigned to insurers who possess unsurpassed financial stability related to maintaining positive surplus as regards policyholders, liquidity of invested assets, an acceptable level of financial leverage, reasonable loss and loss adjustment expense reserves and realistic pricing. FSRs summarize Demotech’s opinion of the financial stability of an insurer regardless of general economic conditions or the phase of the underwriting cycle. FSRs utilize statutory financial data based on insurance accounting principles prescribed or permitted by the National Association of Insurance Commissioners (NAIC). Since 1989, FSRs of A or better have been accepted by the major participants in the secondary mortgage marketplace, including Fannie Mae, Freddie Mac and HUD.
Demotech Financial Summary of TBIC and Press Release
Serious About Solvency
Demotech’s study has been more accurate over a ten year period in predicting solvency problems as compared to A.M. Best Co. Demotech’s report of Serious about Solvency and graph summarizes the results of their studies of the long-term solvency of carriers that they rate A or better versus comparable ratings assigned by A.M. Best. Serious about Solvency link.