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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 19, 2023 03:53 PM (EST)
AM Best has affirmed the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Ratings of “a-” (Excellent) of Spinnaker Insurance Company and its 100% reinsured subsidiaries, Spinnaker Specialty Insurance Company and Mainsail Insurance Company, collectively referred to as Spinnaker Insurance Group (Spinnaker). All companies are headquartered in Bedminster, NJ. The outlook of these Credit Ratings (ratings) is stable.
The ratings reflect Spinnaker’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.
The ratings also reflect Spinnaker’s strongest level of risk-adjusted capitalization, as measured by Best’s Credit Adequacy Ratio (BCAR), favorable operating performance trend in recent years and experienced management team. The ratings further reflect the financial and operational benefits that Spinnaker has received from its ultimate parent company, Hippo Holdings Inc. (Hippo) (NYSE: HIPO), including demonstrated capital contributions despite Hippo posting significant recurring operating losses since it acquired Spinnaker in 2020. Hippo is projecting to report positive earnings before interest, income taxes, depreciation and amortization (EBITDA) by year-end 2024. However, should Hippo’s financial trends not improve as expected, Spinnaker’s ratings could be impacted negatively.
The stable outlooks reflect AM Best’s expectation that Spinnaker’s operating performance will remain profitable over the near term, and that its balance sheet strength will remain supportive of its current ratings level and planned premium growth.
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.