The Real Deal Miami

Magnolia rating wilts

December 04, 2009 03:03PM

Magnolia Insurance, one of the state’s 20 largest property insurers, received a ratings downgrade after it failed to provide a rating agency with data it requested. Demotech suspended its rating for the Coconut Grove-based insurer, revoking the “A”’ or “exceptional” rating it bestowed on Magnolia in October. Joe Petrelli, president of Demotech, said he hadn’t received confirmation the company had put into place a business plan to increase its staff with insurance-qualified professionals, boost its capital and revamp its backup catastrophe plans. Magnolia said in a prepared statement it was trying to resolve the problem quickly. State insurance regulatory spokesman Tom Zutell said the state is working with the insurer to resolve any problems. [Miami Herald]