About Us Hero Pane

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Modern USA Financials

We formed Modern USA Insurance Company with longevity and financial solvency in mind.  Since we do not assume policies from Citizens or other insurance companies we have maintained a slow and steady growth that has provided a build-up of capital and financial strength.  This business strategy has led to a preservation of assets which will continue to be our priority into the future.  Funds collected from our customers are invested in the highest quality corporate bonds, municipal bonds and mortgage backed securities.  The portfolio strategy minimizes volatility in the market place and maximizes liquidity.  A high level of liquidity ensures that cash will be available to pay losses should they occur.   Over 98% of our portfolio is comprised of investment grade securities as rated by Moody’s and Standard & Poor’s.

Florida is an unpredictable state.  We’ve addressed this through continuously running models of our risks and carefully designing a reinsurance program tailored to the homes and mobile homes we insure.  In the event of a hurricane, the majority of our losses are covered by the reinsurance we purchase from companies around the world.  Our reinsurance program is based on relationships in London and Bermuda that have developed over many years through trust and confidence.  We've designed a program that considers both the severity of a particular storm as well as the possibility of multiple storms in one year.   In any given storm our retention (i.e. deductible) is less than 10% of our surplus.  As seen in the list below, we spread the risk between multiple reinsurers and only purchase coverage from the highest quality companies in the world.  We also purchase a portion of our overall reinsurance from the Florida Hurricane Catastrophe Fund.

2016 Reinsurance AM Best
Surplus (millions)
Everest Reinsurance Company A+ $3,211
Argo Reinsurance Limited A $1,243
Aspen Bermuda Limited A $2,270
Chubb Tempest Reinsurance Ltd A++ $6,300
Fidelis Insurance Bermuda Ltd A- $1,182
Hannover Re (Bermuda) Ltd A+ $1,248
Hiscox Insurance Co (Bermuda) Limited A $848
Nephila Capital Limited (obo Allianz Risk Transfer AG) A+ $599
Piller Capital Management Ltd (obo Hannover Ruck SE) A+ $9,343
Amlin AG A $1,547
Lloyd's Syndicates $33,763
Ariel Reinsurance Co Ltd (Syndicate 1910) A
CATCo Investment Mgt Ltd (Hannover Ruck SE) A+
Pioneer Consortium 9981 (Liberty Syndicate 4472) A
The Lutine Alternative (TLA) Consortium 9327 A  
Acapella Syndicate 2014 A
Amlin Syndicate 2001 A+
Arcus Syndicate 1856 A  
Ascot Syndicate 1414 A
Brit Syndicate 2987 A
Canopius Syndicate 4444 A
Cathedral Syndicate 2010 A
China Re Syndicate 2088 A
Dale Syndicate 1729 A
Faraday Syndicate 0435 A
Hardy Syndicate 0382 A
Hiscox Syndicate 0033 A
Kiln Syndicate 0510 A
Kiln Syndicate 1880 A
MAP Syndicate 2791 A
Markel Syndicate 3000 A
Novae Syndicate 2007 A
QBE Syndicate 0566 A
XL Caitlin Syndicate 2003 A  
Cayman Islands
Y-Bridge Insurance SPC * *
* - Fully funded captive.

Company Rating

Regardless of the severity of a general economic downturn or deterioration in the insurance cycle, insurers earning a Financial Stability Rating® of A possess Exceptional financial stability related to maintaining positive surplus as regards policyholders.

Demotech, Inc. is a highly regarded financial analysis firm. Financial Stability Ratings® (FSRs) are a leading indicator of an insurer's financial stability. FSRs are based upon a series of quantitative ratios and considerations which together comprise Demotech's Financial Stability Analysis Model. FSRs are accepted by several government sponsored enterprises, including Fannie Mae, Freddie Mac and various programs of the United States Department of Housing and Urban Development (HUD), mortgage lenders, as well as a number of umbrella and agents errors and omissions insurance markets.