About Demotech Financial stability can be independent of size. Small, well-managed Property & Casualty insurers can be more financially stable than larger, highly leveraged insurers. Financial Stability Ratings (FSRs) are widely accepted by government sponsored enterprises (GSEs), including Fannie Mae, Freddie Mac and various programs of the United States Department of Housing and Urban Development (HUD). Developed in 1988, Demotech, Inc.’s Financial Stability Analysis Model was the first model universally applied to Property & Casualty insurers of all sizes. Their quantitative model was utilized before risk-based capital, dynamic financial analysis, or enterprise risk management was introduced on an industry-wide basis. Demotech's rating process is based on an analysis of a series of quantitative ratios and certain qualitative considerations.