ATIC Financials

We formed American Traditions 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. Our Company carefully invests in high quality securities.

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.

2022 Reinsurance AM Best Rating Surplus (millions)
Everest Reinsurance Company A+ $5,805
Employers Mutual Casualty Company A $1,717
Insurance Company of the West A $1,469
Swiss Reinsurance American Corporation A+ $3,785
Ascot Bermuda Ltd A $2,078
Convex Re Ltd A- $1,939
Hannover Re Ltd AA- $1,956
Hiscox Insurance Company Ltd A $1,294
Nautical Management / Markel Ltd A $2,106
Vantage Risk Ltd A- $623
United Kingdom
Hiscox Syndicate 0033 A $2,295
Faraday Syndicate 0435 A $648
Kiln Syndicate 0510 A $2,024
QBE Syndicate 0566 A
Atrium Syndicate 0609 A $879
Advent Syndicate 0780 A $794
Antares Syndicate 1274 A $419
Indigo Syndicate 1301 A $689
Ascot Syndicate 1414 A $1,282
Dale Syndicate 1729 A $284
Arcus Syndicate 1856 A $540
Tokio Syndicate 1880 A $485
GIC Syndicate 1947 A $199
MS Amlin Syndicate 2001 A $2,158
Cathedral Syndicate 2010 A $465
Beazley Syndicate 2623 A $3,617
MAP Syndicate 2791 A $540
Ark Syndicate 4020 A $462
Canopius Syndicate 4444 A $2,293
Blenheim Syndicate 5886 A $485
Convex Insurance UK Limited A- $890
Europe - Other
Hannover Rueck ES A+ $8,162
Korean Reinsurance Co A


New India Assurance Co A- $5,513 

DemoTech 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.

KBRA Company Rating

NEW YORK (December 20, 2022) – KBRA assigns a BBB insurance financial strength rating (IFSR) to American Traditions
Insurance Company. The Outlook is Stable.

American Traditions Insurance Company is a property/casualty insurer domiciled in Florida specializing in personal lines
insurance exclusively within the state. The company offers a variety of products but predominantly writes within the niche manufactured housing segment as well as the traditional homeowners (HO-3) market. The insurance financial strength rating (IFSR) reflects an experienced management team with a focused strategy, consistent profitability at the managing general agent affiliate which enhances financial flexibility and operational stability at American Traditions, a conservative asset portfolio with low investment risk, a strong liquidity and asset-liability profile, and a strong local market presence with a well-established distribution network.

Balancing these strengths are the company’s geographic and earnings concentration which necessitates a dependence on reinsurance and exposes it to event risk, moderately weak to adequate risk-based capitalization, and elevated premium leverage. Further, recent losses across the last five years have been driven by natural catastrophes and elevated storm frequency, though the company has revamped exposure management tools, tightened underwriting guidelines, and implemented rate increases, which KBRA views favorably.

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