Demotech suspends homeowner insurer Magnolia Insurance Co.'s rating

Ratings agency Demotech Inc. has suspended Magnolia Insurance Co.'s rating, raising concerns about the financial stability of the Florida homeowners insurer.

Demotech said that it has tried unsuccessfully in recent weeks to obtain both the company's financial statements due Nov. 15 and an update on implementing a business plan.

Magnolia, which has about 70,000 policies, said in a statement late Thursday that it's in the process of correcting the situation.

Tom Zutell of the Florida Office of Insurance Regulation said regulators are aware of the suspension and working with the company.

"The office's primary goal is to ensure policyholders are protected and that any and all claims that arise are paid in full," he said.