COLUMBUS, Ohio, April 5, 2013 /PRNewswire/ -- Demotech, the financial analysis company whose Financial Stability Ratings ® have coalesced Florida's property insurance marketplace since 1996, has finalized its financial review of the year-end 2012 annual statements, statements of actuarial opinion and other pertinent data as regards forty-nine carriers writing more than 60% of Florida's homeowners' insurance. (Logo: http://photos.prnewswire.com/prnh/20120123/MM39893LOGO ) According to Joseph L. Petrelli, President and Co-founder, "Demotech does not review or analyze Citizens Property Insurance Corporation or State Farm's Florida affiliate, however, the carriers that we review and follow comprise nearly 75% of the market that is not Citizens or State Farm. As such, the trends we have observed are representative of the marketplace as a whole." Barry J. Koestler, II, Chief Ratings Officer, stated that 41 of the 49 insurers reported an increase in policyholder's surplus at year-end 2012. "If the carriers that we review had not recorded an increase in surplus from operations, we would have requested capital infusions in some cases. The take away for Floridians is that the surplus of the carriers that we review and follow increased more than 16% to $2.42 billion. The underwriting gain for this group was more than $16.5 million with 34 of the 49 insurers contributing to the cumulative underwriting gain. Only 15 insurers reported an underwriting loss." Robert M. Warren, Client Services Manager, observed that the carriers seem to be reporting realistic operating results. His comment was based upon the fact that, in the aggregate, reported loss reserve development has been favorable. This implies that insurers are not minimizing their estimates of losses on the low side. However, Petrelli notes that there are some storm clouds forming over the Sunshine State. "Many carriers underperformed relative to the anticipated results they advised us they would achieve, while others failed to record loss and loss adjustment expense reserves that meet our requirements. Every carrier that satisfactorily completed this year-end review must continue to do so for each quarter's review. In addition, they must meet or exceed our catastrophe reinsurance program requirements applicable to the 2013 storm season. Not every carrier will be able to do so. It is likely that rating withdrawals will take place before the end of June."