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FOR IMMEDIATE RELEASE
OLDWICK, N.J. - JUNE 29, 2012 12:00 AM (EDT)
A.M. Best Co. has assigned a financial strength rating (FSR) of A- (Excellent) and an issuer credit rating (ICR) of “a-” to Oklahoma Specialty Insurance Company (OSIC) (Oklahoma City, OK). The outlook assigned to both ratings is stable.
The rating actions on OSIC specifically reflect the explicit support provided by its immediate parent company, Houston Specialty Insurance Company (HSIC) (Houston, TX), in the form of a 100% quota share reinsurance agreement, which became effective April 1, 2012. The reinsurance agreement was recently executed following the receipt of regulatory approval.
OSIC is ultimately wholly owned by Houston International Insurance Group, Ltd. (HIIG) and was established as a newly-formed insurance company whose purpose is to write excess and surplus lines business in Texas. The company was incorporated on December 12, 2011 and was capitalized with $15.75 million of contributed seed capital as of December 31, 2011. Being a reinsured affiliate of HSIC, the company also was assigned the same financial size category as HSIC of VIII ($100 million - $250 million).
Factors that could lead to positive or negative rating actions on OSIC would be changes in HSIC’s ratings and/or alterations to the quota share reinsurance support provided by HSIC.
On June 26, 2012, A.M. Best affirmed the FSR of A- (Excellent) and ICRs of “a-” of HSIC and its subsidiary, Imperium Insurance Company (IIC). Concurrently, A.M. Best affirmed the FSR of A (Excellent) and the ICR of “a” of Great Midwest Insurance Company, a subsidiary of IIC. These companies are all headquartered in Houston, TX.
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.
Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source.