AM Best

A.M. Best Affirms Ratings of Wright National Flood Insurance Company

 Fred Eslami
Senior Financial Analyst
(908) 439-2200, ext. 5406

Steven Chirico, CPA
Assistant Vice President
(908) 439-2200, ext. 5087
Christopher Sharkey
Manager, Public Relations
(908) 439-2200, ext. 5159

Jim Peavy
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644


OLDWICK - JULY 28, 2015 09:02 AM (EDT)
A.M. Best has affirmed the financial strength rating of A- (Excellent) and the issuer credit rating of "a-" of Wright National Flood Insurance Company (WNFIC) (San Antonio, TX). The outlook for both ratings is stable.

The ratings of WNFIC (formerly known as Fidelity National Indemnity Insurance Company) reflect its strong risk-adjusted capitalization and favorable operating results, as well as the support provided by its ultimate parent, Brown and Brown, Inc. [NYSE: BRO] and exclusive reinsurance arrangement with the U.S. government via the Federal Emergency Management Agency (FEMA). Offsetting these positive rating factors are the monoline nature of WNFIC's business and its dependence on National Flood Insurance Program (NFIP), the potential concentration of risk derived from excess flood policies, albeit small in nature, and potential changes in FEMA's rules related to Write Your Own Program selection practices.

WNFIC derives significant revenue and fee-based income from its book of non-risk-bearing NFIP business, as well as from its excess flood coverage. These are expected to significantly contribute to the company's overall profitability.

A.M. Best views WNFIC's experienced management and corporate strategy as a major factor that strengthens its ratings, given the company's conservative underwriting, operational goals and transparency. A.M. Best also views WNFIC's enterprise risk management practices as strong given their impact on the company's conservative risk culture and defined risk controls, as well as providing optimization of its capital and surplus.

A.M. Best expects WNFIC's future operating performance to be strong, with a stable earnings profile that should further support the efforts to control its growth and business writings, which are consistent with its capital and surplus position.

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.

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