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FOR IMMEDIATE RELEASE
OLDWICK - JUNE 02, 2021 04:54 PM (EDT)
AM Best has placed under review with negative implications the Financial Strength Rating of B- (Fair) and the Long-Term Issuer Credit Rating of “bb-” (Fair) of Safepoint Insurance Company (Safepoint) (Temple Terrace, FL).
The under review with negative implications status for Safepoint reflects its near-term capital management plan for its holding company, Safepoint Holdings, Inc. The unfavorable pressure from the holding company, as it relates to the insurance company’s overall balance sheet strength, has increased due to equity erosion and outstanding debt, which exceeds AM Best’s threshold for what is considered a neutral level of financial leverage.
Safepoint’s capital management plan calls for an improved financial position for Safepoint Holdings, Inc., which is expected to alleviate the aforementioned pressure. Should these plans not materialize within the expected timeline, negative rating action may follow. The ratings will remain under review until management finalizes and executes this plan and AM Best evaluates the impact on the overall organization.
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 London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.