JUPITER, Florida (March 3, 2011) — On February 28, regulators took control of a property and casualty insurer, AequiCap Insurance Company of Fort Lauderdale, Florida, following the signing of an order of receivership for purposes of rehabilitation by the Second Judicial Circuit Court.
AequiCap Insurance Company provided workers compensation and commercial auto coverage. With assets of $29.7 million at September 30, 2010, it had been rated E+ (“Very Weak”) since 2007 by Weiss Ratings. It reported a loss of more than $2.3 million through September 30, 2010. AequiCap Insurance Company had weak Weiss-calculated Risk-Adjusted Capital ratios of 0.44% and 0.34% (target is 1%).
The Florida Department of Financial Services, which has been appointed receiver, states on its website that claims will continue to be processed and paid to the extent possible. Policies are not cancelled and will continue to provide coverage, providing policyholders continue to pay premiums. AequiCap ceased writing new business on February 16, 2011. Consumers looking for information on what to do if an insurance company fails can review the FAQ section of Weiss Ratings’ website.
Weiss Ratings, the nation’s independent provider of bank and insurance company ratings, accepts no payments for its ratings from rated institutions. It also distributes independent ratings on the shares of thousands of publicly traded companies, mutual funds, closed-end funds and ETFs. For more information on financial strength ratings, visit www.weissratings.com.