There are numerous insurance industry awards and recognition based on corporate achievement. Almost all of them focus on a single aspect of success, such as top-line revenue growth or quarterly and annual profitability.
Demotech believes that running a successful and profitable insurance company involves satisfying all stakeholders, including regulators, consumers, producers, reinsurers, claimants, employees and, ultimately, the owners.
Demotech believes that each of these stakeholders participates in or contributes to the financial results reported by an insurance company. To recognize companies that have met or exceeded our objective criteria for each of our stakeholder categories, we created the Stakeholder Team Accomplishment Recognition™ (STAR) award.
Demotech evaluated the following criteria to determine which companies met each Stakeholder's interests concurrently.
1. The Company was active as of March 31 of the year of the award.
2. The Company was assigned a Demotech Company Classification.
3. There will be at least one recipient for each Demotech Company Classification.
4. The Company had positive policyholder surplus as of December 31 of the previous year.
5. The Company had positive net loss and LAE reserves as of December 31 of the previous year.
6. The Company had positive gross premiums written as of December 31 of the previous year.
1. The Company had a risk based capital ratio greater than 300% in the previous 5 calendar years.
2. The Company had two or less exceptional IRIS ratio results for the previous calendar year.
3. The Company's IRIS Reserve Ratios 11, 12 and 13 did not exceed 5 percent in any of the five previous calendar years.
The Company's ratio of Commissions and Compensation to Employees to Gross Premiums Written was in the top median of its Company Classification.
Commission and Compensation from Page 11, Column 4 of the latest Annual Statement, Underwriting and Investment Exhibit Part 3 includes:
2.1 Commission and brokerage direct excluding contingent
The Company's ceded loss and Loss Adjustment Expense (LAE) ratio for the latest ten accident years combined must not exceed 130% of the net loss and LAE ratio for the last ten accident years combined, as shown on Schedule P Part 1 Summary.
The Company's gross loss and LAE ratio for the latest accident year, as shown in schedule P Part 1 Summary, must have been in the top median of its Company Classification.
The Company's return on average net admitted assets must have been in the top third of its Company Classification.
Return on average net admitted assets is based upon net income after policyholder dividends and all taxes.