Best’s News & Research Service - July 23, 2021 11:34 AM (EDT)
AM Best Removes from Under Review With Developing Implications, Affirms Credit Ratings of Members of Vault Holdings Group
- July 23, 2021 11:34 AM (EDT)
Oldwick //BestWire// - AM Best has removed from under review with developing implications and affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” (Excellent) of Vault E&S Insurance Company (Little Rock, AR) and Vault Reciprocal Exchange (St. Petersburg, FL), collectively referred to as Vault Holdings Group (Vault). The outlook assigned to these Credit Ratings (ratings) is stable.
The ratings reflect Vault’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.
Allied World Assurance Company Holdings, Ltd. recently sold a majority ownership of the Vault entities to an investor group led by Cornell Capital. Concurrently, Vault Reciprocal Exchange and Vault E&S Insurance Company have entered into a pooling agreement for all premiums and losses. Upon the deal’s close, the new owners injected a material amount of equity to strengthen Vault’s balance sheet and support future growth. The group remains committed to providing coverage for the high net worth homeowners market and is actively expanding its geographic footprint. The group predominantly writes in Florida, South Carolina and Texas, but expects its geographic concentration to decline as it continues to diversify. While volatile performance has been observed in 2021, AM Best expects Vault’s operating results to improve in the near term in accordance with company-provided projections.
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 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.