Best’s News & Research Service - March 15, 2021 08:36 AM (EDT)
AM Best Assigns Credit Ratings to LIO Insurance Company
- March 15, 2021 08:36 AM (EDT)
Oldwick //BestWire// - AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” to LIO Insurance Company (LIO) (Aliso Viejo, CA). The outlook assigned to these Credit Ratings (ratings) is stable.
The assigned ratings reflect LIO’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 (ERM).
LIO’s level of risk-adjusted capitalization supports its prospective underwriting, credit and investment risks. The company intends to offer specialized commercial package products and will start in a few key states while expanding its footprint in the near term. Management has established specific underwriting leverage tolerances as the company expands.
LIO is owned by LIO Holdings Company, which contributed cash in exchange for equity ownership. The owners of LIO Holdings Company come with extensive knowledge of the insurance industry, as do senior management, and provide access to strategic distribution channels that LIO intends to leverage. Accordingly, the successful execution of LIO’s business development plans is dependent on its strategic business partners. Management will employ underwriting, ERM and claims tactics, which have proven viable in other insurance operations, as well as utilize advanced technologies to enable straight-through processing at the onset of business. The current and anticipated reinsurance schemes keep the expected net probable maximum loss to a modest amount of surplus.
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.