ATIC Financials

We formed American Traditions Insurance Company with longevity and financial solvency in mind. 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.

2023 Reinsurance AM Best Rating Surplus (millions)
Pillar A+ $31,918
DE Shaw NA $27,877
Chard Re (Hannover Non XIS Paper) A+ $18,100
Inigo (1301) A $17,280
MAP (2791) A $15,675
Longtail Re NA $12,203
Ark Bermuda A $10,500
Ascot (1414) A $10,375
Nephila (Markel BDA Paper) A $9,172
Convex UK A- $8,775/td>
Convex Bermuda A $8,775
Hiscox (33) A $8,695
Hiscox Bermuda A $8,395
Everest Re A+ $6,600
IQUW (1856) A $6,450
Faraday (435) A $6,300
MS Amlin (2001) A $6,100
Arch (obo Quantedge) A+ $5,400
Canopius (4444) A $4,995
QBE (566) A $4,950
Lancashire (2010) A $4,790
Ascot Reinsurance Company Limited A $4,625
Dale (1729) A $3,380
Hannover Re Bermuda A+ $3,195
GIC Syndicate (1947) A $2,650
Ark (4020) A $2,110
Liberty Paris (Syndicate 4472 Paper) A $1,200
Partner Re Bermuda A+ $1,125
Insurance Company of the West A $1,050
Argenta (2121) A $850
Atrium (609) A $765
Antares (1274) A $700
Korean Re A $700 

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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