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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 22, 2021 12:18 PM (EST)
AM Best has assigned a Financial Strength Rating of A- (Excellent) and a Long-Term Issuer Credit Rating of “a-” (Excellent) to Champlain Specialty Insurance Company (Champlain) (Burlington, VT). The outlook assigned to the Credit Ratings (ratings) is stable.
The ratings reflect Champlain’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).
Based on the business plan shared with AM Best, Champlain’s risk-adjusted capitalization, as measured by Best’s Capital Adequacy Ratio (BCAR), is projected to be at the strongest level over the next four years. Very strong liquidity measures and low leverage further support the balance sheet strength assessment. Champlain’s operating performance is assessed as adequate given results throughout the company’s first year of operation, as well as expected results in the near term. AM Best views the business profile as limited due to the niche nature of the company’s target market. Champlain’s ERM is assessed as appropriate based on the company’s projected size, scope and risk profile.
Champlain’s ability to execute on its business plan will be a key rating factor going forward, especially the company’s planned capital raise over the next five years. Other factors that could adversely impact the rating include a level of capital that is shown to be unsupportive of business operation or if there is significant deviation from the business plan to a degree that it adversely impacts operating results.
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 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.