Best’s News & Research Service - March 07, 2025 09:30 AM (EST)
AM Best Assigns Credit Ratings to Fortegra Belgium Insurance Company NV
- March 07, 2025 09:30 AM (EST)
//BestWire// - AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to Fortegra Belgium Insurance Company NV (FBIC) (Belgium). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect FBIC’s balance sheet strength, which AM Best assesses as strong, as well as its adequate operating performance, limited business profile and appropriate enterprise risk management.
The ratings also consider, in the form of rating lift, AM Best’s expectation that FBIC’s parent, The Fortegra Group, Inc. (Fortegra), will provide financial support to the company, if needed. In addition, FBIC receives reinsurance support from the group.
FBIC is a Belgium-incorporated start-up subsidiary of Fortegra, a U.S. insurance group specialising in program underwriting for personal and commercial lines property/casualty (P/C) business. FBIC was established in 2024 to write specialty P/C insurance business in several European markets.
The company’s initial risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is assessed at the strongest level, supported by initial capital of EUR 15 million. The company is expected to have a conservative investment strategy consisting of high credit quality fixed income securities. AM Best expects the company’s prospective risk-adjusted capitalisation to weaken over the next three years as it assumes risk; however, to remain at the strongest level, as measured by BCAR, supported by a further capital injection from the parent during the start-up phase.
FBIC projects positive, albeit modest, technical results during the start-up phase, supported by local and group underwriting expertise. Overall profitability will be enhanced by sound investment income. AM Best assesses the prospective operating performance as adequate. FBIC’s business profile is considered limited, driven by significant reliance on a number of outsourcing partners, including managing general agents. The company aims to mitigate this risk through a careful selection, management and monitoring of its business partners.
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 specialising 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.