DECEMBER 11, 2015 11:05 AM (EST)
A.M. Best Assigns Ratings to Clear Blue Insurance Company, Inc. and Clear Blue Specialty Insurance Company
Senior Financial Analyst
(908) 439-2200, ext. 5696
Henry Witmer, CPCU, ARM-E
Assistant Vice President
(908) 439-2200, ext. 5097
Manager, Public Relations
(908) 439-2200, ext. 5159
Assistant Vice President, Public Relations
(908) 439-2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 11, 2015 11:05 AM (EST)
A.M. Best has assigned a financial strength rating of A-(Excellent) and the issuer credit ratings of “a-” to Clear Blue Insurance Company, Inc. (Chicago, IL) and Clear Blue Specialty Insurance Company (Charlotte, NC). The outlook assigned to both ratings is stable.
These ratings reflect the companies’ supportive risk-adjusted capital position and the expectations of financial performance within its business plan. Recognition is also given to management’s planned implementation of advanced measures to mitigate contractual, collateral and underwriting risk. Additional consideration was given to management’s projected market profile, operating structure, opportunity for fee-based income and the availability of additional capital.
Partially offsetting these factors are the inherent concerns with the companies’ profile as start-ups building a supportive base of business. The companies will provide fronting services for a diverse mix of managing general agents. Under this format, A.M. Best is concerned with key operational and execution risks. The companies will cede 100% of their exposures, which increases the potential for credit and dispute risk among participants. The outlooks reflect the expectation that the companies’ results within the initial period will fall within a range of tolerance to the initial expectations.
Both companies are owned by Clear Blue Financial Holdings.
This press release relates to rating(s) that have been published on A.M. 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 visit A.M. Best’s Ratings & Criteria Center.
A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source.