Michael T. Venezia
Senior Financial Analyst
(908) 439-2200, ext. 5034
Assistant Vice President
(908) 439-2200, ext. 5665
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - JUNE 12, 2014 02:25 PM (EDT)
A.M. Best has assigned a financial strength rating (FSR) of A (Excellent) and an issuer credit rating (ICR) of "a" to GeoVera Reinsurance, Ltd. (Cayman Islands). The outlook assigned to both ratings is stable.
Concurrently, A.M. Best has affirmed the FSR of A (Excellent) and ICR of "a" of the three other members of GeoVera Insurance Group (GeoVera) (Fairfield, CA). The outlook for all ratings is stable. (See below for a complete listing of the companies.)
GeoVera Reinsurance, Ltd. was formed in late 2013 to replace GeoVera Re, Ltd. (Bermuda). GeoVera Re, Ltd., which was a former member of the group, is in the process of being liquidated with all of its assets and liabilities transferred to GeoVera Reinsurance, Ltd. As a result, A.M. Best has withdrawn the FSR of A and the ICR of "a" of GeoVera Re, Ltd.
The rating affirmations reflect GeoVera's excellent risk-adjusted capitalization, strong operating earnings and management's experience in its market segments. GeoVera's underwriting focus continues to capitalize on its experienced market knowledge in catastrophe-prone business segments. Although GeoVera concentrates all of its underwriting efforts on providing coverage in catastrophe-prone areas, it combines an established catastrophe-modeled and web-based quoting and binding system to ensure proper pricing with an extensive catastrophe reinsurance program to mitigate its exposure. However, GeoVera maintains high gross catastrophe leverage and is significantly dependent on reinsurance to reduce this exposure to a manageable level on a net basis.
GeoVera Insurance Group consists of the following members:
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.
A.M. Best Company is the world's oldest and most authoritative insurance rating and information source.