Demotech, Inc. Assigns Financial Stability Ratings® to Encompass Floridian Insurers

Demotech, Inc., the originator of Financial Stability Ratings® (FSR) for Property and Casualty insurers, announces the assignment of Financial Stability Ratings® of A (Exceptional) to Encompass Floridian Insurance Company (EFIC) and Encompass Floridian Indemnity Company (EFI). The assignment of these Financial Stability Ratings® was a critical component to the positioning and structuring of Encompass Insurances Florida business.

Columbus, OH (PRWEB) March 2, 2005 -- Demotech, Inc., the originator of Financial Stability Ratings® (FSR) for Property and Casualty insurers, announces the assignment of Financial Stability Ratings® of A (Exceptional) to Encompass Floridian Insurance Company (EFIC) and Encompass Floridian Indemnity Company (EFI). The assignment of these Financial Stability Ratings® was a critical component to the positioning and structuring of Encompass Insurances Florida business.

The Financial Stability Rating® of A (Exceptional) were based, in large part, upon the companys disciplined business plan, which was to be implemented by an experienced management team, and an excellent reinsurance program designed to address the Florida property insurance marketplace.

A Financial Stability Rating® summarizes Demotechs opinion as to the financial stability of an insurer regardless of general economic conditions or the phase of the underwriting cycle. Financial Stability Ratings® are based upon statutory insurance accounting principles prescribed or permitted by the National Association of Insurance Commissioners (NAIC). For more than a decade, Financial Stability Ratings® of A or better have been accepted by the major participants in the secondary mortgage marketplace, including the Fannie Mae, Freddie Mac and HUD.

As part of our continuous evaluation of companies, subscribers to Financial Stability Ratings® submit both annual and quarterly financial reports. Financial Stability Ratings® are reviewed and, when appropriate, revised quarterly.

The Companies are wholly owned subsidiaries of Allstate Floridian Insurance Company, a separate and distinct indirect subsidiary of Allstate Insurance Company, whose ultimate parent is The Allstate Corporation.

The Allstate Corporation (NYSE: ALL) is the nations largest publicly held personal lines insurer. EncompassSM Insurance brand property and casualty products are sold exclusively through independent agents. Additional financial information and other items of interest are available at the Companys web site located at http://www.allstate.com.

About Demotech, Inc.

Since 1985, Demotech, Inc., a Columbus Ohio base financial analysis and actuarial services firm, has been serving the industry, providing independent opinions on the financial stability of Property and Casualty insurers and Title underwriters. Demotech offers a variety of services including actuarial opinions and pricing assistance, strategic market and product evaluations and analysis, as well as financial valuations. Demotech was the first service to have its rating process formally reviewed and accepted by the Federal Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie Mac) and the United State Department of Housing and Urban development (HUD).

Visit http://www.demotech.com for more information.

Contact:

Barry J. Koestler, II, CFA

Senior Financial Analyst and Chief Ratings Officer

bkoestler@demotech.com, 1 800 354 7207 x27

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