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JUNE 10, 2021 04:13 PM (EDT)

AM Best Places Credit Ratings of Capacity Insurance Company Under Review With Developing Implications


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 Christopher Draghi
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Richard Attanasio
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Christopher Sharkey
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Jim Peavy
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FOR IMMEDIATE RELEASE

OLDWICK - JUNE 10, 2021 04:13 PM (EDT)
AM Best has placed under review with developing implications the Financial Strength Rating of B+ (Good) and the Long-Term Issuer Credit Rating of “bbb-” (Good) of Capacity Insurance Company (Capacity) (Sunrise, FL).

Capacity’s Credit Ratings (ratings) were placed under review with developing implications following the recent announcement that Team Focus Insurance Group, LLC (Team Focus), the holding company for Capacity, and PEAK6 InsurTech (PEAK6) have entered into a definitive purchase agreement where PEAK6 will be purchasing the majority of Team Focus. As part of the transaction, the restructuring will include a capital infusion to strengthen the insurance operation and facilitate future growth. Continued volatility in Capacity’s operating performance has reduced the insurance entity’s risk-adjusted capitalization and driven elevated pressure from the holding company whose impact is considered within Capacity’s overall balance sheet strength. Historically, the holding company’s impact has been considered neutral, and AM Best expects capital contributions to offset recent deterioration. The ratings will remain under review until management finalizes and executes these plans, all customary regulatory approvals are received and AM Best evaluates the impact on the 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.


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