FEBRUARY 08, 2022 03:27 PM (EST)
AM Best Assigns Credit Ratings to Benchmark Specialty Insurance Company, a New Member of Benchmark Insurance Group
|Kevin Dorsey AIAF, ARe |
Senior Financial Analyst
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Manager, Public Relations
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FOR IMMEDIATE RELEASE
OLDWICK - FEBRUARY 08, 2022 03:27 PM (EST)
AM Best has assigned a Financial Strength Rating of A (Excellent) and a Long-Term Issuer Credit Rating of “a” (Excellent) to Benchmark Specialty Insurance Company (BSIC) (Little Rock, AR). The outlook assigned to these Credit Ratings (ratings) is stable. BSIC is a newly added member of Benchmark Insurance Group (BIG) and a wholly owned subsidiary of Benchmark Insurance Company, which is ultimately owned by Trean Insurance Group, Inc. [NASDAQ: TIG]. The company is being afforded the group’s ratings via a 100% quota share reinsurance contract with Benchmark Insurance Company. The ratings of the other members of the group are not affected by BSIC’s rating assignment.
BSIC has been made a member of BIG due to its strategic importance to the group. BSIC will not write workers’ compensation insurance. Instead, BSIC will write specialty/niche products through separate program partners, which will provide the group with expanded geographic diversification, rate flexibility and new product offerings on a non-admitted basis. The business focus of the general agents and program partners will be niche products and tougher-to-place risks that require the expertise to be underwritten profitably. BSIC is reinsured by its lead rating unit, Benchmark Insurance Company, and shares common executive management and operational capabilities.
The group’s ratings reflect its balance sheet strength, which AM Best assesses as very strong, as well as its strong operating performance, limited business profile and appropriate enterprise risk management.
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.