COLUMBUS, Ohio, Dec. 10, 2012 /PRNewswire/ -- Columbia Lloyds Insurance Company and its affiliate MDOW Insurance Company has earned a Financial Stability Rating^® (FSR) of A, Exceptional, from Demotech, Inc.  This level of FSR is assigned to insurers who possess exceptional 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 (L&LAE) and realistic pricing.

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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.

About Columbia Lloyds Insurance Company
Columbia Lloyds Insurance Company, and affiliate MDOW Insurance Company, is proud to have earned a Financial Stability Rating^® of A, Exceptional from Demotech, Inc.  This rating confirms the financial stability of both Companies.  Columbia Lloyds is a privately held Company that was incorporated in 1983 domiciled in the State of Texas.  The Company received its Certificate of Authority from the Texas Department of Insurance in June 1985.  Since its inception, the Company has written residential property in various States across the US.  The Company markets homeowners and residential property through Independent Agents.

About Demotech, Inc.
Demotech, Inc. is a financial analysis firm specializing in evaluating the financial stability of regional and specialty insurers.  Since 1985, Demotech has served the insurance industry by assigning accurate, reliable and proven Financial Stability Ratings^® (FSRs) for Property & Casualty insurers and Title underwriters.  FSRs are a leading indicator of financial stability, providing an objective baseline of the future solvency of an insurer.  Demotech's philosophy is to review and evaluate insurers based on their area of focus and execution of their business model rather than solely on financial size.  This philosophy was the catalyst for the Demotech Company Classification System, which was published in Insurance Journal, in order to stratify and categorize insurers into operational categories.  Visit www.demotech.com for more information.

SOURCE Demotech, Inc.