Best’s News & Research Service - November 16, 2023 01:38 PM (EST)
AM Best Places Credit Ratings of Sutton National Group’s Members Under Review With Negative Implications
- November 16, 2023 01:38 PM (EST)
Oldwick //BestWire// - AM Best has placed under review with negative implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Sutton Specialty Insurance Company (SSIC) and Sutton National Insurance Company (SNIC) which are collectively known as Sutton National Group or the group. SSIC and SNIC are domiciled in Oklahoma City, OK.
The Credit Ratings (ratings) have been placed under review with negative implications following the group’s decision to re-organize the ownership structure of the organization. The new structure would remove the group’s direct affiliation with 777 Partners LLC with Steve Pasko remaining as the ultimate owner. Without the re-structure, there is significant negative pressure on the ratings driven by 777 Partners LLC, which has not provided AM Best with audited financial statements in the last two years.
The ratings reflect the group’s balance sheet strength, which AM Best assesses as very strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management. The ratings are expected to remain under review with negative implications until the re-structure is complete, Sutton National Insurance Holdings LLC has had time to complete its audit for 2023 and AM Best has completed its evaluation of the impact of the new structure on the group’s credit rating fundamentals.
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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
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.