A.M. Best Affirms Ratings of Beazley Insurance Company, Inc.
A.M. Best Affirms Ratings of Beazley Insurance Company, Inc. Business Wire 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 enhancement. 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 www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS RESERVED. Contact: A.M. Best Co. Kenneth Monahan, 908-439-2200, ext. 5342 Financial Analyst firstname.lastname@example.org or Joseph Roethel, 908-439-2200, ext. 5630 Assistant Vice President email@example.com or Rachelle Morrow, 908-439-2200, ext. 5378 Senior Manager, Public Relations firstname.lastname@example.org or Jim Peavy, 908-439-2200, ext. 5644 Assistant Vice President, Public Relations email@example.com