Ratings agency to downgrade 17 Florida insurers, sparking backlash from CFO Patronis, regulators

Demotech, a ratings agency for insurance companies, is set to downgrade 17 Florida property insurers, a move that could deliver another blow to an already fragile market.

It also spurred a swift response from Chief Financial Officer Jimmy Patronis and the Office of Insurance Regulation, which blasted the decisions. Patronis called Demotech a “rogue ratings agency” that is playing “havoc with the financial lives of millions of Floridians,” in a letter to the leaders of the Federal Housing Finance Agency, Fannie Mae and Freddie Mac, government-backed groups that guarantee mortgages.

Demotech is the only agency that rates domestic Florida insurers, so

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