OCTOBER 13, 2021 02:51 PM (EDT)
AM Best Affirms Credit Ratings of Members of Spinnaker Insurance Group
|Robert Valenta, CPCU |
Senior Financial Analyst
+1 908 439 2200, ext. 5291
Raymond Thomson, CPCU, ARe, ARM
+1 908 439 2200, ext. 5621
Manager, Public Relations
+1 908 439 2200, ext. 5159
+1 908 439 2200, ext. 5644
FOR IMMEDIATE RELEASE
OLDWICK - OCTOBER 13, 2021 02:51 PM (EDT)
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 subsidiary, Spinnaker Specialty Insurance Company, collectively referred to as Spinnaker Insurance Group (Spinnaker). Both 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 ultimate parent company is Hippo Holdings Inc. (Hippo), which acquired Spinnaker Insurance Company on Aug. 31, 2020. The ratings further reflect the financial and operational benefits that Spinnaker has received as part of the Hippo organization, including demonstrated capital support and best-in-class technology. Finally, the ratings recognize the strengthened pro forma capitalization of Hippo following its Aug. 2, 2021, merger with Reinvent Technology Partners Z, the parent’s adequate pro forma liquidity position and its ongoing capital support from investors. Conversely, negative rating actions could occur if there is a material deterioration in Hippo’s balance sheet strength, operating performance or liquidity profile, including its ability to raise additional capital.
The stable outlooks reflect AM Best’s expectation that Spinnaker’s operating performance will remain profitable in the near term, and that its balance sheet strength will remain supportive of its current ratings level.
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.