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FOR IMMEDIATE RELEASE
OLDWICK - JANUARY 27, 2021 10:26 AM (EST)
AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a” to 1842 Insurance Company (1842) (Bel Air, MD). The outlook assigned to these Credit Ratings (ratings) is stable. 1842 is a newly formed member of Harford Mutual Insurance Group (Harford).
The ratings reflect 1842’s balance sheet strength, which AM Best categorizes as very strong, as well as its adequate operating performance, neutral business profile and appropriate enterprise risk management.
Recently, management underwent a reorganization of Harford into a mutual holding company structure, and 1842 was added to the group. With the addition of 1842, management decided to terminate an existing pooling agreement between two existing members and implement a 100% quota share reinsurance contract between all group members. 1842 will cede 100% of all writing and liabilities to Harford.
The ratings reflect the addition of 1842 to the group’s intercompany reinsurance agreement, as well as 1842’s strategic importance to Harford. Its very strong level of balance sheet strength reflects Harford’s consolidated risk-adjusted capitalization, which AM Best expects to remain in the strongest range over the intermediate term, as measured by Best’s Capital Adequacy Ratio (BCAR).
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 New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.