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FOR IMMEDIATE RELEASE
OLDWICK - NOVEMBER 13, 2020 04:02 PM (EST)
AM Best has placed under review with developing implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of Vault Reciprocal Exchange (Vault) (St. Petersburg, FL).
The under review with developing implications status follows the recent announcement that Cornell Capital (Cornell), Hudson Structured Capital Management Ltd. (HSCM) and Allied World Assurance Company Holdings, Ltd. (Allied World) have entered into a definitive agreement for Cornell and HSCM to acquire the majority ownership of Vault entities from Allied World. Management has communicated detailed plans regarding the expected reinsurance structure and capitalization of Vault to be implemented when the transaction closes, which is anticipated to occur in the first quarter of 2021, pending regulatory approvals. AM Best expects these plans to improve Vault’s quality of capital, financial leverage and capital flexibility, absent Allied World’s majority ownership. The Credit Ratings will remain under review until the close of the transaction, and AM Best evaluates the post-transaction details.
Vault was created in 2017 and remains committed to providing coverage to the high net worth homeowners market. Since initially writing business in Florida, the company has expanded into several states including South Carolina, New Jersey, Connecticut and Pennsylvania. The company remains relatively new and continues to prudently expand in accordance with its strategic plan.
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AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.