A.M. Best Affirms Ratings of Beazley Insurance Company, Inc.
OLDWICK, N.J. -- February 8, 2013
A.M. Best Co. has affirmed the financial strength rating of A (Excellent) and
issuer credit rating of “a” of Beazley Insurance Company, Inc. (BICI)
(Farmington, CT). The outlook for both ratings is stable.
The rating affirmations reflect BICI's solid stand-alone level of
risk-adjusted capitalization as well as the extensive explicit support
provided through quota share reinsurance agreements with Lloyd's Syndicate
3623, which is managed by Beazley plc (Beazley). In addition, BICI benefits
from third party credit risk protection provided by Beazley. Given the
explicit capital support that is in place, BICI receives partial rating
Partially offsetting these positive rating factors are the challenges BICI has
faced in its initial years in operation while trying to establish itself in
the very competitive specialty commercial insurance marketplace. These
challenges have led to BICI falling short of its projected premium production
and/or profitability targets in recent years. Subsequently, these adverse
results have contributed to BICI exiting from unprofitable product offerings
in an effort to improve its operating performance. Going forward, A.M. Best
expects BICI to continue utilizing Beazley’s established underwriting
strategies and principles as it continues to build its premium levels and
further broaden its business profile.
While A.M. Best does not expect positive rating actions in the near future,
factors that could lead to such actions include a sustained improvement in
BICI’s risk-adjusted capitalization and operating performance. Factors that
could lead to negative rating actions include a material decline in the
company’s risk-adjusted capitalization, a significant weakening of its
operating performance or a deterioration in its reserves. Furthermore, any
upward or downward movement in the ratings of the Lloyd’s market, given its
implications on Lloyd’s Syndicate 3623, or a perceived lessening of support
provided by Beazley would also impact BICI’s ratings.
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 highlights the different rating criteria employed in the rating
process. Best’s Credit Rating Methodology can be found at
Founded in 1899, A.M. Best Company is the world’s oldest and most
authoritative insurance rating and information source. For more information,
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
A.M. Best Co.
Kenneth Monahan, 908-439-2200, ext. 5342
Joseph Roethel, 908-439-2200, ext. 5630
Assistant Vice President
Rachelle Morrow, 908-439-2200, ext. 5378
Senior Manager, Public Relations
Jim Peavy, 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
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