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Best’s News & Research Service - June 24, 2024 11:10 AM (EDT)

AM Best Assigns Credit Ratings to Dellwood Specialty Insurance Company

  • June 24, 2024 11:10 AM (EDT)
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//BestWire// - AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to Dellwood Specialty Insurance Company (Dellwood Specialty) (Scottsdale, AZ). The outlook assigned to these Credit Ratings (ratings) is stable.

The ratings reflect Dellwood Specialty’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).

Dellwood Specialty is a startup excess and surplus (E&S) lines insurance company targeting small- and medium-size enterprise risks exclusively through wholesale brokers and program administrators.

The ratings of Dellwood Specialty reflect its risk-adjusted capitalization being at the strongest level, as measured by Best’s Capital Adequacy Ratio (BCAR), supported by an initial capital raise of more than $250 million. This capital raise exceeded initial targets with investors including several insurance carriers and individuals. AM Best expects the company’s strongest level of risk-adjusted capitalization to persist over its initial five-year startup phase. Additionally, the ratings reflect Dellwood Specialty’s adequate operating performance, underpinned by a credible business plan.

The company’s limited business profile and appropriate ERM highlight the risks inherent in implementing its strategy as a startup E&S carrier. The E&S segment has grown substantially and is expected to expand further; however, it remains very competitive with established carriers and many new entrants vying for business. Dellwood’s senior management team consists of individuals with extensive experience and strong track records in the industry. To navigate this environment, Dellwood Specialty plans to rely on its innovative technology stack and investors’ long-term commitment to the business.

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.

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