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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - MAY 30, 2007 12:00 AM (EDT)
A.M. Best Co. has assigned a financial strength rating (FSR) of A+ (Superior) and an issuer credit rating (ICR) of "aa-" to GNY Custom Insurance Company (Custom) (Phoenix, AZ). A.M. Best has also affirmed the FSR of A+ (Superior) and assigned ICRs of "aa-" to the Greater New York Group (GNY Group) and its members. The GNY Group consists of Greater New York Mutual Insurance Company (GNY Mutual) (New York, NY) and its three wholly owned subsidiaries, Insurance Company of Greater New York, Strathmore Insurance Company (both of New York, NY) and Custom. The outlook for all ratings is stable.
Custom is a wholly owned subsidiary of GNY Mutual and was established to write non-admitted commercial property/casualty business offering multi-line excess and surplus (E&S) insurance coverages in multiple regional markets, utilizing the E&S distribution channels. The targeted businesses include habitational and student housing, restaurant with entertainment, seasonal hotels and motels and artisan contractor exposures. Custom's infrastructure, including underwriting, claims handling and systems, will all be handled through GNY Mutual with an experienced E&S executive running the E&S operations with experienced E&S underwriters. Underwriting activities are expected to begin in mid-2007.
Custom is well capitalized for anticipated underwriting commitments, with significant support provided by GNY Mutual through a 90% quota share reinsurance treaty, whereby Custom will cede 100% of its gross premiums, losses and expenses to GNY Mutual. GNY Mutual will then retrocede 10% of this same business, after third party reinsurance protection, back to Custom. As a result, Custom shares GNY Mutual's A.M. Best ratings.
The rating actions taken on the GNY Group reflect its strong capitalization and solid operating results as well as the numerous risk management actions taken in recent years to reduce GNY Group's exposure to terrorism loss as well as past adverse loss reserve development.
For Best's Ratings, an overview of the rating process and rating methodologies, please visit Best's Rating Center.
Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors.