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FOR IMMEDIATE RELEASE
OLDWICK - FEBRUARY 10, 2021 09:29 AM (EST)
AM Best has assigned a Financial Strength Rating of A- (Excellent) and Long-Term Issuer Credit Ratings of “a-” to Everspan Indemnity Insurance Company and Everspan Insurance Company. These companies are collectively referred to as Everspan Group. The outlook assigned to these Credit Ratings (ratings) is stable. Both companies are domiciled in Arizona.
The ratings reflect Everspan Group’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management (ERM).
The balance sheet assessment is based on initial risk-adjusted capital that meets AM Best’s criteria for newly formed companies, which expects capital to support exposures through a five-year startup period. Capital was provided by Ambac Financial Group, Inc. [NYSE: AMBC]. AM Best assesses Everspan Group’s operating performance as adequate based on a clearly defined business plan, taking into consideration a level of execution and implementation risk for a newly formed entity. AM Best views the group’s business profile as limited. This encompasses the group’s entry into the increasing competitive space for fronting/transformer-type carriers. The group will provide fronting services for a diverse mix of managing general agents aligned with highly select reinsurance partners. The enterprise will retain an enhanced level of strategic portions of select programs. The group’s ERM captures a clearly defined risk appetite structure. It addresses the heightened risks inherent in its business profile and is designed by its extensively experienced management team.
Negative rating actions could occur if the group’s risk-adjusted capital is short of needs, actual operating results fall adversely outside the initial projections, or risk appetite and tolerance levels prove to be inadequate for the group’s profile.
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 Guide to 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 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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.