AM Best


A.M. Best Assigns Ratings to Valiant Specialty Insurance Company and Valiant Insurance Company


CONTACTS:

Janet Hernandez
Senior Financial Analyst
(908) 439-2200, ext. 5767
janet.hernandez@ambest.com

Steven Chirico, CPA
Assistant Vice President
(908) 439-2200, ext. 5087
steven.chirico@ambest.com


Christopher Sharkey
Manager, Public Relations
(908) 439-2200, ext. 5159
christopher.sharkey@ambest.com

Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
james.peavy@ambest.com

FOR IMMEDIATE RELEASE

OLDWICK - DECEMBER 11, 2014 01:49 PM (EST)
A.M. Best has assigned a financial strength rating (FSR) of A- (Excellent) and an issuer credit rating (ICR) of "a-" to Valiant Specialty Insurance Company (VSIC) and Valiant Insurance Company (VIC). The outlook assigned to the ratings is stable. Both companies are domiciled in Wilmington, DE.

The ratings of VSIC and VIC are based on its good risk-adjusted capital position, experienced management team and the disciplined implementation of its business plan. The ratings also recognize the support the companies receive from their ultimate parent, Hamilton Insurance Group, Ltd. (Hamilton Group), and their affiliate Hamilton Re. Ltd. (Bermuda), in the form of reinsurance and capital maintenance agreements. These strengths are offset by the start-up nature of the companies and increased competition that may challenge some business plan tenets.

VSIC and VIC will operate as U.S.-domiciled primary insurers writing a combination of small and middle market business casualty and specialty insurance primarily through agents and wholesale channels. The companies will follow stringent underwriting and risk management guidelines as does its affiliate, Hamilton Re., Ltd.

VSIC and VIC will be renamed Hamilton Specialty Insurance Company and Hamilton Insurance Company, pending regulatory approval.

Factors that could result in positive rating actions would be VSIC and VIC meeting or exceeding its business plan over the long term. A.M. Best could downgrade the ratings and/or revise the outlook, if the companies' Best Capital Adequacy Ratio (BCAR) declines, its operating performance and risk profile deteriorate, or if losses from claims or investments erode capital. The companies' ratings are tied to the rating of Hamilton Group; therefore, unfavorable performance or material loss of capital could result in rating pressure for VSIC and VIC.

The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.

Key insurance criteria reports utilized:


  • Catastrophe Analysis in A.M. Best Ratings

  • Rating Members of Insurance Groups

  • Rating New Company Formations

  • Risk Management and the Rating Process for Insurance Companies

  • Understanding Universal BCAR

  • Understanding BCAR for Property/Casualty Insurers

  • Analyzing Insurance Company Liquidity


This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best's Ratings & Criteria Center.

A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.


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