Financial Stability Rating®

A' Unsurpassed

An independent financial analysis and actuarial services firm named Demotech, Inc. conducted a rigorous, quantitative analysis of Zephyr Insurance Company, Inc. and has awarded a Financial Stability Rating® of:

A’
(Unsurpassed)

The data used to develop our rating is obtained from Zephyr’s statutory financial statements. Some of the items reviewed include:

N

Total Current Assets

N

Total Current Liabilities

N

Working Capital

N

Total Revenue

N

Receivables

N

Administrative Expenses

N

Total Assets

N

Total Liabilities

N

Surplus

N

Net Income

N

Total Expenses

N

Leverage Ratios

The highest rating is A” (Unsurpassed), followed by A’ (Unsurpassed), A (Exceptional), S (Substantial), M (Moderate) and L (Licensed).

This rating, effective September 2, 2010, is acceptable to Fannie Mae and Freddie Mac and can be confirmed by visiting Demotech’s website.

Zephyr’s financial strength is secured by its strong reinsurance program. Being a property catastrophe insurance company, Zephyr’s ability to provide coverage capacity is due to the support of many of the world’s largest and financially secure reinsurance markets. Zephyr’s security guidelines require its reinsurers to have at a minimum A.M. Best ratings of A- and unencumbered policyholders’ surplus of $500,000,000 or collateralize their share of Zephyr’s reinsurance program.