Press Release - AUGUST 07, 2019

AM Best Assigns Credit Ratings to AmFirst Specialty Insurance Company

 Jacqalene Lentz, CPA
+1 908 439 2200, ext. 5762

Greg Williams
Senior Director
+1 908 439 2200, ext. 5815

Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159

Jim Peavy
Director, Public Relations
+1 908 439 2200, ext. 5644


AM Best has assigned a Financial Strength Rating of B++ (Good) and a Long-Term Issuer Credit Rating of “bbb+” to AmFirst Specialty Insurance Company (Specialty) (Ridgeland, MS). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Specialty’s balance sheet, which AM Best categorizes as adequate, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM). The ratings also benefit from the implicit and explicit support of its immediate parent, AmFirst Insurance Company, and its ultimate parent, AmFirst Holdings, Inc. (AHI).

Specialty was licensed in 2016 and since then has reinsured certain life premiums from affiliated companies in the AHI group. In 2018, Specialty began selling homeowners coverage direct in the new modular and mobile home market.

Specialty’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is categorized as very strong, reflective of several capital contributions by its immediate parent. The balance sheet assessment of adequate, however, is reflective of its absolute surplus size and significant dependence on reinsurance and exposure to catastrophe risk.

AM Best assesses Specialty’s operating performance as adequate, largely based on its limited results as a newly formed entity. AM Best will continue to monitor whether the company meets planned operating performance expectations. The business profile is assessed as limited based on its significant geographic and product line concentration. ERM is assessed as appropriate, with the process managed by its immediate parent.

Rating enhancement is based on the implicit and explicit support Specialty receives from its parent, in the form of common management and financial guaranty, as well as its level of integration into Specialty’s overall operational capabilities.

While positive rating actions are unlikely over the near term, positive rating movement may be driven by a sustained trend of favorable operating performance with organic surplus growth. Negative rating action may occur if there is a deterioration in operating performance, a significant loss of surplus that no longer supports the ratings, or if the company does not meet plan expectations. In addition, negative rating action may occur if Specialty no longer receives the implicit or explicit level of support provided by its parent.

This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.

AM Best is a global rating agency and information provider with a unique focus on the insurance industry.

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