Best’s News & Research Service - May 27, 2014 03:44 PM (EDT)
A.M. Best Assigns Ratings to Bondex Insurance Company
- May 27, 2014 03:44 PM (EDT)
Oldwick //BestWire// - A.M. Best has assigned a financial strength rating of B+ (Good) and an issuer credit rating of "bbb-" to Bondex Insurance Company (Florham Park, NJ). The outlook for both ratings is stable.
The assigned ratings for Bondex reflect its adequate capitalization, acceptable pro forma earnings projections and adherence to strict underwriting guidelines. The ratings also reflect the company's experienced management and staff with operational experience in the surety marketplace with their sister agency, Dale Group, Inc.
Somewhat offsetting these positive factors are the execution risk associated with starting up a stand-alone insurance company as well as operational risk associated with insuring contractors with imperfect credit. The outlook reflects A.M. Best's view that business plans are reasonable given management's operating assumptions.
While the company is well positioned at its current rating level, negative rating pressure could occur if operating results and /or capitalization were to deteriorate.
The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology.
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