By Isha Marathe

Feb 3 - (The Insurer) - Demotech has assigned new Florida carrier Mangrove Property Insurance Company a financial stability rating of A, Exceptional, following The Insurer last week revealing its launch by industry veteran Steve Weinstein.

Weinstein, former longtime RenaissanceRe general counsel and senior executive, received approval from the Florida Office of Insurance Regulation (FLOIR) to launch the admitted homeowners carrier Mangrove on 26 January. He will serve as the CEO of Mangrove.

On 27 January, The Insurer reported that the St Petersburg-based company intended to offer financial coverage through licensed independent agents across all of Florida's 67 counties.

Mangrove confirmed that FLOIR had approved its certificate of authority to provide P&C coverage in Florida on 15 January, and that it had applied for a financial stability rating from Demotech with plans to begin writing homeowners coverage for policyholders outside of Citizens “as soon as possible after receipt of that rating”.

The Ohio-based rating agency assigns FSRs of A, Exceptional, to insurers that can show "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, and realistic pricing, Demotech said.

“We’re honored to earn this exceptional rating, and believe it reflects our strategy of building a permanent franchise in the Florida marketplace, committed to exceptional underwriting and claims service, and backed by robust capital and reinsurance protections," Weinstein said.

"In partnership with leading independent agents and our other partners, Mangrove is committed to fostering financial and physical resilience in Florida, and to help our policyholders build back better after a loss.”

Mangrove is the 10th property casualty insurer to be set up in Florida and approved by FLOIR following the state enacting sweeping reforms in 2023, joining ASI Select Insurance, Trident Reciprocal Exchange, Ovation Home Insurance Exchange, Manatee Insurance Exchange, Condo Owners Reciprocal Exchange, Orange Insurance Exchange, Orion180 Select Insurance Company, Orion180 Insurance Company, Mainsail Insurance Company, and Tailrow Insurance Exchange.